Formidable Company Collected the Following Information Using the Two Variance Method, What Is the Budget Variance

question 44

Multiple Choice

Formidable Company collected the following information: $\begin{array}{ll}\text { Standard costs per unit: }\\\text { Variable overhead } & 4 \text { machine hours } @ \$ 6 \text { per machine hour } \\\text { Fixed overhead } & 4 \text { machine hours } @ \$ 10 \text { per machine hour }\\\\\text { Actual output } & 20,000 \text { units } \\\text { Denominator (normal capacity) output } & 21,000 \text { units } \\\text { Actual machine hours } & 79,000 \text { machine hours } \\\text { Actual variable overhead cost } & \$ 540,000 \\\text { Actual fixed overhead cost } & \$ 810,000\\\end{array}$ Using the two variance method, what is the budget variance?

• A)$70,000 (U)
• B)$30,000 (F)
• C)$30,000 (U)
• D)$70,000 (F)

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Definitions:

Freud's Theories

A set of psychological and psychoanalytical theories developed by Sigmund Freud that explore the functioning of the human mind, particularly the unconscious and its influence on behavior.

Modify Others

This term is vague but may suggest the concept of influencing, changing, or altering the behavior or characteristics of others through intervention or interaction.

Defense Mechanism

Unconscious tactics employed to shield an individual from the distress tied to undesirable thoughts or emotions.

Sublimation

In psychology, sublimation refers to the process of channeling unacceptable impulses, thoughts, or emotions into more acceptable or productive behaviors.