Figure 11-3

question 155

Multiple Choice

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours) ; however this year 19,000 units were produced with the following actual costs:
Refer to Figure 11-3.Using an after-the-fact flexible budget,calculate the variance for power.

• A)$1,000 F
• B)$1,010 U
• C)$3,000 U
• D)$1,010 F
• E)none of these

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Definitions:

Reflective Skepticism

The practice of questioning and critically examining one's own beliefs and assumptions.

Critical Thinkers

Individuals who actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an answer or conclusion.

Belief and Doubt

The state of accepting something as true versus the feeling of uncertainty or lack of conviction.

John Rawls

A prominent American philosopher known for his work in political philosophy, especially his theory of justice as fairness.