Use the Following Information for the Next 3 Questions

question 34

Multiple Choice

Use the following information for the next 3 questions.
Anacortes, Inc. uses a standard cost system. At the beginning of the year, it budgeted $50,000 for fixed overhead. The estimated variable overhead allocation rate was $3.30 per machine hour, and machine hours is the cost allocation base for both variable and fixed overhead. The static budget was based on 16,000 units of production and sales, and each unit was expected to use 2.5 machine hours. Actual total overhead was $170,000, and Anacortes produced and sold 15,000 units during the year. Actual machine hours for the year were 36,000.
-The combined fixed and variable spending variance was

• A) $4,950 favorable
• B) $3,750 favorable
• C) $1,200 unfavorable
• D) $3,125 unfavorable

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Definitions:

More Effective

A comparison indicating superior efficiency, productivity, or outcomes compared to another method, approach, or entity.

Research Evidence

Information, findings, or data that has been systematically obtained through scientific methods to support or refute a hypothesis.

Initiating Structure

A leadership behavior focused on defining and structuring the roles, tasks, and responsibilities within a group or organization.

Behavioral Models

Theoretical frameworks used to understand, explain, and predict human behavior in various settings.