The Information Below Was Obtained from the Records of the First

question 69

Multiple Choice

The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. All materials are added at the beginning of the manufacturing process.
-The equivalent units for labor and overhead for the month is:

• A) 70,000
• B) 90,000
• C) 80,000
• D) 82,500

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production achieved.

Variable Overhead Rate Variances

The difference between the actual variable overhead incurred and the standard cost allocated, based on actual production activity.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services, such as maintenance and clerical staff.

Precision Drills

Specialized tools or equipment designed for creating holes with exact dimensions and tolerances.