Hyteck, Inc The Fixed Overhead Spending Variance Was:
A) $9,000 U
B)

question 1

Multiple Choice

Hyteck, Inc. is a capital intensive firm. Indirect costs make up nearly 70% of the product costs. The company has no direct material costs because customers provide the direct materials used for each job. To plan and control such costs, the firm employs flexible budgets and standard costs. Overhead rates, based on direct labour hours, are derived from the master budget. $\begin{array}{lrr}&\text { Master } & \text { Actual } \\&\text { Budget } & \text { Results } \\\hline\text { Units produced } & 2,000 & 1,820 \\\text { Direct labour hours } & 10,000 & 9,200 \\\text { Fixed overhead } & \$ 100,000 & \$ 98,000 \\\text { Variable overhead } & \$ 160,000 & \$ 150,000 \\\text { Direct labour } & \$ 100,000 & \$ 90,000\end{array}$ The fixed overhead spending variance was:

• A) $9,000 U
• B) $2,000 F
• C) $7,000 U
• D) $2,800 U

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Definitions:

Fordist Period

An industrial production model based on mass production and standardized products, named after Henry Ford, characterized by large-scale factory production and high wages.

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