QUESTION 54Cost AccountingChoose the answer from the choices Standard:Direct labor hours per unitVariable overhead per hourFixed overhead per hour (based on 11,990 DLHS)Actual:Units producedDirect labor hours2.20P 2.503.004,4008,800P 29,95042,300Variable overheadFixed overhead Using the three-variance approach, what is the efficiency variance? *О а.Р 2,200 FОБ.Р5,775 UO C.P 7,975 UO d. P11,770 F

Standard hours for actual production = 4400*2.20 = 9680 hours

Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHS) Actual: 2.20 P 2.50 3.00 Units produced Direct labor hours Variable overhead Fixed overhead 4,400 8,800 P 29,950 42,300

Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on 11,990 DLHS) Actual: 2.20 P 2.50 3.00 Units produced Direct labor hours Variable overhead Fixed overhead 4,400 8,800 P 29,950 42,300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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QUESTION 54

Cost Accounting
Choose the answer from the choices

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
2.20
P 2.50
3.00
4,400
8,800
P 29,950
42,300
Variable overhead
Fixed overhead

Using the three-variance approach, what is the efficiency variance? *
О а.Р 2,200 F
ОБ.Р5,775 U
O C.P 7,975 U
O d. P11,770 F

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