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Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow.
Actual units produced: 42,000
Actual machine hours worked: 120,000
Actual variable overhead incurred: $520,000
-Admac's variable-overhead efficiency variance is:
Drive
An internal motivational state created by physiological or psychological needs that drives an organism to fulfill those needs.
Homeostasis
The ability of an organism or environment to maintain stability in response to changes.
Intrinsic Motives
Internal drives for behavior that come from personal satisfaction or the joy of doing a task, rather than external rewards.
Drive Level
The intensity of an urge or motivation that propels an individual towards a certain behavior to satisfy a need or achieve a goal.
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