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:

Genes And Biology

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The total amount of mental effort or resources a person is capable of using at any given time.

Language Acquisition

The process by which humans gain the capacity to perceive and comprehend language, as well as to produce and use words and sentences to communicate.

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The cognitive inability to differentiate between one's own perspective and another person's perspective, often noticed in children but can also occur in adults.