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During the Period Richeleau Produced 1,000 Units of Product The Total Under- or Overapplied Overhead for the Period Was

Question 120

Multiple Choice

During the period Richeleau produced 1,000 units of product. The flexible budget for standard costs is:  Direct materials $43,000 Direct labour 67,000 Variable overhead 30,000 Fixed overhead 25,000 Variances for the period are:  Direct materials price 400U Direct materials efficiency 500 F Direct labour price 600 F Direct labour efficiency 200U Variable overhead spending 300 F Variable overhead efficiency 100 F Fixed overhead spending 500 F Fixed overhead production volume 1,000U\begin{array} { l r } \text { Direct materials } & \$ 43,000 \\\text { Direct labour } & 67,000 \\\text { Variable overhead } & 30,000 \\\text { Fixed overhead } & 25,000 \\\quad \text { Variances for the period are: } & \\\text { Direct materials price } & 400 \mathrm { U } \\\text { Direct materials efficiency } & 500 \mathrm {~F} \\\text { Direct labour price } & 600 \mathrm {~F} \\\text { Direct labour efficiency } & 200 \mathrm { U } \\\text { Variable overhead spending } & 300 \mathrm {~F} \\\text { Variable overhead efficiency } & 100 \mathrm {~F} \\\text { Fixed overhead spending } & 500 \mathrm {~F} \\\text { Fixed overhead production volume } & 1,000 \mathrm { U }\end{array} The total under- or overapplied overhead for the period was:


A) $400 overapplied
B) $500 underapplied
C) $900 overapplied
D) $100 underapplied

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