Use the Following Information for the Next 6 Questions

question 118

Multiple Choice

Use the following information for the next 6 questions.
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 labor hours, are derived from the master budget.
-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:

Events

Occurrences or happenings, often of significance and usually discrete, that can be observed and recorded.

Continuous Random Variable

A type of random variable that can take an infinite number of values within a given range.

Outcomes

The possible results or consequences of an experiment or situation.

Intervals

In mathematics and statistics, a range between two numbers or quantities, indicating their difference or the period between two points in time.