Author Question: Paula's Peach Preserves produces jars of gourmet peach jam. Paula prepared the following standard ... (Read 136 times)

kmcolvin · **on:** Feb 5, 2023

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 labor	1.50
Variable overhead	1.02
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

Deonnak85 · **Reply #1 on:** Feb 5, 2023

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