The Following Information Was Gathered for Spartans Company Assume the Cost Driver Is Direct- Labor Hours

question 39

Multiple Choice

The following information was gathered for Spartans Company: $\begin{array}{ll}\text { Budgeted direct-labor hours } & 34,000 \\\text { Actual direct- lab or hours } & 32,400 \\\text { Budgeted factory overhead } & \$ 144,500 \\\text { Actual factory overhead } & \$ 149,980\end{array}$ Assume the cost driver is direct- labor hours. The amount of factory overhead applied is:

• A) $144,500
• B) $149,980
• C) $142,922
• D) $137,700

---

Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Encourage Doubt

To promote questioning or skepticism about certain beliefs or assumptions.

Directive Leadership

A leadership style characterized by providing clear instructions, setting goals, and closely supervising tasks to ensure they are completed as required.