Use the Following Information for Questions

question 87

Multiple Choice

Use the following information for questions
Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May $310000 of overhead was incurred in working 31500 hours when 32000 standard hours were allowed.
-The overhead controllable variance is

• A) $5000 favorable.
• B) $2000 favorable.
• C) $10000 favorable.
• D) $10000 unfavorable.

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Definitions:

Largest

Being the greatest in size, quantity, or degree compared to others in a set or group.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Comparative Advantage

The capacity of an entity, whether a single person, a corporation, or a nation, to create a product or offer a service more cost-effectively in terms of foregone opportunities than its competitors.

Low Opportunity Cost

A situation where the cost of foregoing the next best alternative is relatively minimal when choosing one option over another.