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:

Logistics Driver

Critical factors that influence the efficiency and effectiveness of a company's logistics and supply chain operations.

Sourcing

The process of finding, evaluating, and engaging suppliers of goods and services to fulfill business requirements.

Supply Chain Surplus

The total value created in a supply chain, measured as the difference between the value of the final product to the customer and the costs incurred in bringing the product to market.

Sourcing Processes

The procedures and steps taken by a company to identify, evaluate, and contract suppliers for goods and services.