172. Pearce Company Pearce Company uses a standard cost system for its production process. Pearce Company applies overhead based on direct labor hours. The following information is available for July: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHS) Actual: Units produced Direct labor hours Variable overhead Fixed overhead 2.20 $2.50 $3.00 4,400 8,800 $29,950 $42,300 Refer to Pearce Company Using the three-variance approach, what is the efficiency variance? B. $2,200 FC. $7,975 UD. $5,775 U A. $11,770 F

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Refer to Pearce Company Using the three-variance approach, what is the efficiency variance?

A. $11,770 F

B. $2,200 F

C. $7,975 U

D. $5,775 U

172. Pearce Company
Pearce Company uses a standard cost system for its production
process. Pearce Company applies overhead based on direct labor hours. The following
information is available for July:
Standard:
Direct labor hours per unit
Variable overhead per hour
Fixed overhead per hour
(based on 11,990 DLHs)
Actual:
Units produced
Direct labor hours
Variable overhead
Fixed overhead
2.20
$2.50
Refer to Pe
Company Using
B. $2,200 FC. $7,975 UD. $5,775 U
$3.00
4,400
8,800
$29,950
$42,300
ee-variance approach,
efficiency variance?
A. $11,770 F
Transcribed Image Text:172. Pearce Company Pearce Company uses a standard cost system for its production process. Pearce Company applies overhead based on direct labor hours. The following information is available for July: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHs) Actual: Units produced Direct labor hours Variable overhead Fixed overhead 2.20 $2.50 Refer to Pe Company Using B. $2,200 FC. $7,975 UD. $5,775 U $3.00 4,400 8,800 $29,950 $42,300 ee-variance approach, efficiency variance? A. $11,770 F
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