Fleming Incorporated Makes a Single Product-A Critical Part Used in Commercial

question 169

Multiple Choice

Fleming Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The fixed overhead budget variance is:

• A) $18,000 U
• B) $18,000 F
• C) $45,495 U
• D) $45,495 F

---

Definitions:

Management by Objectives

A management strategy in which employees and managers collaborate to set, monitor, and achieve specific objectives within an organization, aligning individual performance with organizational goals.

Goal-setting Program

A structured approach to identifying and planning to achieve specific objectives, often used in personal and professional development.

Management by Reinforcement

A management strategy that employs the use of rewards and punishments to influence employee behavior towards desired outcomes.

Management by Exemption

A management style where leaders only intervene when standards are not met or when there are deviations from expected performance