Colina Production Company Uses a Standard Costing System

question 2

Multiple Choice

Colina Production Company uses a standard costing system. The following information pertains to 2016. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500 units
Actual factory overhead costs ($16,500 is fixed) $40,125
Actual direct labor costs (11,250 hours) $131,625
Standard direct labor for 5,500 units:
Standard hours allowed 11,000 hours
Labor rate $12.00
The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
Variable factory overhead $22,500
Fixed factory overhead 13,500
Total factory overhead $36,000
What is the variable overhead efficiency variance for Colina Production Company?

• A) $562.50 (F)
• B) $3,000.00 (U)
• C) $1,687.50 (F)
• D) $562.50 (U)

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Definitions:

Social Interactions

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Physiological Evolution

The gradual changes and adaptations in the physiological traits of organisms over generations.

Cognitive Social Learning Theory

A theory that emphasizes the role of observational learning, imitation, and modeling in the acquisition of new behaviors, including social and sexual behaviors.

Psychoanalytic Perspective

A theoretical perspective that emphasizes the influence of the unconscious mind on behavior, developed by Sigmund Freud.