Goolden Electronics Corporation Has a Standard Cost System in Which

question 128

Multiple Choice

Goolden Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company had budgeted its fixed manufacturing overhead cost at $58,000 for the month and its level of activity at 2,500 MHs.The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

• A) $880 Unfavorable
• B) $880 Favorable
• C) $3,200 Favorable
• D) $3,200 Unfavorable

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially in terms of word order and punctuation.

Telegraphic Speech

A stage of language development in young children in which they use two-word sentences with high-content words, omitting smaller, less important ones.

Proposition

An assertion that communicates a conviction or opinion, and has the potential to be accurate or erroneous.

Standard Form

A way of structuring arguments, statements, or equations according to established rules to make them clearer, easier to analyze, or solve.