Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The variable overhead efficiency variance is $1,500 F. • The company produced 15,000 units of finished goods during the period. What is the actual quantity of direct labor-hours worked during the period? Multiple Choice O O о O 44,000 hours 44,500 hours 43,500 hours 43,000 hours

Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The variable overhead efficiency variance is $1,500 F. • The company produced 15,000 units of finished goods during the period. What is the actual quantity of direct labor-hours worked during the period? Multiple Choice O O о O 44,000 hours 44,500 hours 43,500 hours 43,000 hours

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Description: Assume the following:• The variable portion of the predetermined overhead rate is $1.50 per directlabor-hour.• The standard labor-hours allowed per unit of finished goods is 3 hours.• The variable overhead efficiency variance is $1,500 F.• The compa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Assume the following:
• The variable portion of the predetermined overhead rate is $1.50 per direct
labor-hour.
• The standard labor-hours allowed per unit of finished goods is 3 hours.
• The variable overhead efficiency variance is $1,500 F.
• The company produced 15,000 units of finished goods during the period.
What is the actual quantity of direct labor-hours worked during the period?
Multiple Choice
о
о
O
O
44,000 hours
44,500 hours
43,500 hours
43,000 hours

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