Irving Corporation Makes a Product with the Following Standards for Direct

question 441

Multiple Choice

Irving Corporation makes a product with the following standards for direct labor and variable overhead: In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours.The variable overhead efficiency variance for November is:

• A) $552 Unfavorable
• B) $600 Unfavorable
• C) $600 Favorable
• D) $552 Favorable

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Definitions:

Automatic Responding

Actions or reactions that occur without conscious thought, often as a result of learned behaviors or reflexes.

Mindlessness

A mental state characterized by a lack of conscious awareness or critical thinking, often resulting in automatic or habitual action without reflection.

Perceived Legitimacy

The extent to which an authority, institution, or power is regarded as justified, rightful, and acceptable.

Milgram Studies

A series of psychological experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.