Auditory Company, Which Applies Overhead to Production on the Basis

question 70

Multiple Choice

Auditory Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 13,000
Actual fixed overhead incurred: $742,000
Standard fixed overhead rate: $15 per hour
Budgeted fixed overhead: $720,000
Planned level of machine-hour activity: 48,000
If Auditory estimates four hours to manufacture a completed unit, the company's fixed-overhead budget variance would be:

• A) $22,000 favorable.
• B) $22,000 unfavorable.
• C) $60,000 favorable.
• D) $60,000 unfavorable.
• E) None of the answers is correct.

---

Definitions:

Infancy

Infancy is the period in human development that spans from birth to the end of the 12th month, characterized by rapid growth and development on multiple fronts.

Motor-scale Items

Components or tasks within a developmental assessment tool designed to measure the motor skills of infants and young children, such as grasping, sitting, and walking.

Bayley Test

A developmental screening test designed to assess motor, language, and cognitive development in infants and young children.

Bayley Scales

The Bayley Scales are standardized tests used to assess the developmental functioning of infants and toddlers, focusing on cognitive, motor, and emotional development.