Wissota Co. applies overhead based on direct labor hours. The variable overhead standard is 4 hours at $6 per hour. During February, Wissota Co. spent $56,700 for variable overhead. 9,150 labor hours were used to produce 2,400 units. How much is variable overhead on the flexible budget? A.$57,600 B. $56,700 C.$54,900 D.$14,400 2. The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price. A.True B.False 3.A standard cost system initially records manufacturing costs at the standard rather than the actual amount. A.True B.False
4. The balanced scorecard attempts to focus managers' attention on more than just financial measures. True False 5. MUSC Company has two divisions, South and East. South produces a unit that East could use in its production. East currently is purchasing 50,000 units from an outside supplier for $50. South is operating at less than full capacity and has variable costs of $27 per unit. The full cost to manufacture the unit is $38. South currently sells 450,000 units at a selling price of $54. If an internal transfer is made, variable costs of $2 shipping and administrative could be avoided. What would be the maximum transfer price?