Figure 11-4

question 127

Multiple Choice

Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
Refer to Figure 11-4.Calculate the fixed overhead spending variance.

• A)$32,000 F
• B)$0
• C)$4,000 U
• D)$12,000 U
• E)$4,000 F

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Definitions:

Coworkers

Individuals who work together in the same organization or on the same project but do not have the same direct line of authority.

Alderfer's ERG Theory

A motivational theory that categorizes human needs into three groups: Existence, Relatedness, and Growth, proposing that individuals are motivated to satisfy these needs.

Existence Needs

Desires for physiological and material well-being.

McClelland

A psychologist known for his work on motivation and needs theory, specifically Achievement Motivation Theory.