The Following Data for the Hermit Company Pertain to the Produc?tion

question 107

Multiple Choice

The following data for the Hermit Company pertain to the produc?tion of 2,000 clay pigeons during July: Standard variable-overhead cost: $6.00 per pound of clay.
Total actual variable-overhead cost: $11,000.
Standard variable-overhead cost allowed for units produced was $12,000.
Variable-overhead efficiency variance was $240 unfavorable.
_____ is the variable-overhead flexible-budget variance.

• A)$1,000 favorable
• B)$240 unfavorable
• C)$1,280 favorable
• D)$1,000 unfavorable

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Definitions:

Consistency Effect

The tendency for people to seek, interpret, and remember information that confirms their preexisting beliefs and attitudes.

Superimposing

The process of laying or placing one thing over another, typically in a way that both are still evident, often used in visual arts or image processing.

Direct Perception Checking

Asking the observed person to confirm an interpretation or a perception about him or her.

Uncertainty Reduction

The process of acquiring information to reduce the level of uncertainty or unfamiliarity in interactions, especially in initial encounters.