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Author Question: Paula's Peach Preserves produces jars of gourmet peach jam. Paula prepared the following standard ... (Read 35 times)

kmcolvin

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Question 1

If a company that applies variable overhead on the basis of direct labor hours records an unfavorable direct labor efficiency variance, the variable overhead efficiency variance will be
◦ favorable.
◦ zero.
◦ unfavorable.
◦ Undeterminable based on the given information.

Question 2

Paula's Peach Preserves produces jars of gourmet peach jam. Paula prepared the following standard cost card for each 18-ounce jar of jam:

Direct materials$4.11
Direct labor1.50
Variable overhead1.02
Fixed overhead 1.35
Total standard cost per jar$7.98

During the year Paula produced 153,225 jars of jam and incurred $210,000 in fixed manufacturing overhead. Paula's fixed overhead spending variance was $7,500 unfavorable. What was Paula's budgeted level of production (if necessary, round your answer to the nearest whole jar)?
◦ 71,854 jars
◦ 150,000 jars
◦ 161,112 jars
◦ 155,556 jars


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Marked as best answer by kmcolvin on Feb 5, 2023

Deonnak85

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kmcolvin

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


debra928

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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