Hamilton Pty Ltd Uses a Standard Costing System for Product

question 36

Multiple Choice

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the fixed overhead volume variance.

• A) $24 000 favourable
• B) $24 000 unfavourable
• C) $34 000 favourable
• D) $10 000 unfavourable

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Definitions:

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The approach of meticulously detailing every aspect of a project or venture to ensure its success.

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A way of reasoning and making decisions based on facts and evidence, without influence from personal feelings or biases.

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