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:

Buck's Traction

A form of skin traction used in orthopedics to immobilize a part of the body, such as a fractured leg, to relieve muscle spasms and align bones.

Hypnagogic Phenomenon

Sensory experiences that occur at the onset of sleep, which may include seeing or hearing things that are not there.

Illusion

A false perception or misinterpretation of a real sensory stimulus.

Chronic Low Self-Esteem

A persistent feeling of inadequacy or lack of confidence in one's own abilities or worth.