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

question 25

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 volume variance?

• A)$6,000 (F)
• B)$40,000 (F)
• C)$40,000 (U)
• D)$6,000 (U)

Distinguish between experimental and control groups.

Recognize the meaning and impact of extraneous variables on research outcomes.

Understand the importance of random assignment in experimental research.

Comprehend the advantages and limitations of the experimental research method.

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Definitions:

Organizational Productivity

The measure of how efficiently and effectively a company or organization utilizes its resources to achieve its objectives.

Employee Turnover

The rate at which employees leave a workforce and are replaced by new employees, affecting organizational performance and continuity.

Employee Engagement

The level of an employee's commitment and connection to their organization, which influences their willingness to put in effort towards its success.

Halo Errors

Bias in evaluating someone based on a single trait, characteristic, or first impression that influences judgment of all other qualities.