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:

Price-Earnings Ratio

A metric used to evaluate the relative value of a company's shares, calculated as the market value per share divided by earnings per share.

Vertical Analysis

A method in financial statement analysis where each entry for the three major categories (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Price-Earnings Ratio

A financial metric that evaluates the market value of a stock relative to its earnings, indicating investor expectations.

Market Price

The current value at which an asset or service can be bought or sold.