Figure 17-6 -Refer to Figure 17-6

question 69

Multiple Choice

Figure 17-6 $\begin{array}{lr}\text { Budgeted fixed overhead for the year } & £ 300,000 \\\text { Budgeted direct labour hours for the year } & 30,000 \\\text { Actual fixed overhead for August } & £ 24,000 \\\text { Actual variable overhead for August } & £ 10,000 \\\text { Direct labour hours worked in August } & 2,600 \\\text { Standard variable overhead cost per direct labour hour } & £ 4 \\\text { Standard direct labour hours allowed for August production } & 2,750\end{array}$
-Refer to Figure 17-6. The fixed overhead spending variance would be

• A)£2,500 unfavourable.
• B)£2,500 favourable.
• C)£1,000 unfavourable.
• D)£1,000 favourable.

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Definitions:

Conglomerate Merger

A merger between companies in unrelated businesses.

Vertical Merger

A merger between companies when one is a supplier or a customer of the other.

Horizontal Merger

A merger between companies in the same line of business, usually as competitors.

Tender Offer

An offer to purchase some or all of shareholders' shares in a corporation at a specific price for a certain period.