Exhibit 10 5 Catalina Company uses activity-based costing to allocate variable manufacturing overhead costs to products.

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Exhibit 10 5 Catalina Company Uses Activity Based Costing To Allocate Variable Manufacturing Overhead Costs To Products 1 (46.86 KiB) Viewed 66 times

Exhibit 10 5 Catalina Company uses activity-based costing to allocate variable manufacturing overhead costs to products. The company produced 1,800 units of product last month, and identified three activities with the following information for last month Standard Quantity Actual Actual Activity Standard Rate per Unit Produced Costs Quantity Purchase orders S80 per order 0.50 order per unit $78,000 1,000 orders Product testing $10 per test minute 0.9 minutes per unit $28.000 2.000 test minutes Indirect labor S16 per direct 5 hours per unit S140,000 8,000 direct labor hour labor hours Refer to Exhibit 10-5. What is the variable overhead efficiency variance for the purchase order activity? O $2,000 favorable O $2,000 unfavorable OS8.000 favorable O $8,000 unfavorable None of the answer choices is correct