Pardoe Inc

question 80

Multiple Choice

Pardoe Inc. ,manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: During March,the following activity was recorded by the company: • The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month;at the end of the month,2,000 pounds of material remained in the warehouse.
• During March,1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for March is:

• A)$1,050 F
• B)$1,050 U
• C)$250 F
• D)$250 U

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Definitions:

Decentralized Leaders

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The ability to assess and initiate things independently, often leading to innovation or the accomplishment of tasks without direct supervision.

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A concept describing the highest stage of leadership maturity characterized by a unique blend of personal humility and professional will.

Personal Humility

A characteristic of individuals who have a modest view of their own importance and are respectful towards others' perspectives and achievements.