Filosa,Inc

question 92

Multiple Choice

Filosa,Inc. ,manufactures and sells two products: Product W9 and Product F8.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The total overhead applied to Product W9 under activity-based costing is closest to:

• A)$297,315
• B)$317,625
• C)$107,401
• D)$275,625

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Definitions:

Total Direct Labor Cost Variance

The difference between the actual labor costs incurred and the standard labor costs expected for the actual level of production. It is used to measure efficiency in production processes.

Direct Labor

Direct Labor involves the wages paid to workers who are directly involved in the production of goods or the delivery of services, being a variable cost tied to production levels.

Overhead Cost Variance

The difference between the estimated overhead costs and the actual overhead costs incurred during a period.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.