Question
Gingerbread Makers produces four products in a single facility. Data concerning these products appear below. Product A B C D Selling price per unit $35.30
Gingerbread Makers produces four products in a single facility. Data concerning these products appear below. Product A B C D Selling price per unit $35.30 $30.20 $20.80 $26.00 Variable manuf. cost per $16.50 $15.80 $7.90 $8.50 unit Variable selling cost per unit $3.80 $1.60 $1,90 $3.30 Baking machine minutes per unit 3.30 170 2.10 2.50 Monthly demand in units 4,000 1,000 3,000 1,000 The baking machines are potentially the constraint in the production facility. A total of 22,600 minutes is available per month on these machines. How many minutes of baking machine time would be required to satisfy demand for all four products? The Smart World uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour- hours. The variable portion of the company's predetermined overhead rate is $3 per direct labour-hour. The standards call for 2 direct labour-hours per unit of output. In April, the company produced 2,000 units using 4,100 direct labour-hours and the actual variable overhead cost incurred was $12,050. What was the variable overhead spending variance? Multiple Choice $250 F $6,050 U $250 U
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