R&N Manufacturing Produces Music Boxes

question 158

Multiple Choice

R&N Manufacturing produces music boxes.The fixed overhead rate is $5.10 per direct labor hour, and the company budgeted for 4,400 direct labor hours for the year.During the year, R&N produced 2,500 music boxes using 4,800 direct labor hours.Actual fixed overhead for the year was $23,000.What is the company's fixed overhead spending variance?

• A)$560 favorable
• B)$560 unfavorable
• C)$1,480 favorable
• D)$1,480 unfavorable

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Definitions:

Market Pricing

The process of determining the salary levels and ranges for positions within a company by comparing them with similar jobs in the external labor market.

Job Evaluation

A systematic process for determining the relative value or worth of a job in an organization, which helps to establish fair compensation.

Skill-Based Pay

A compensation system where pay levels are determined by an employee’s skills, knowledge, and the ability to perform certain tasks, rather than job title or rank.

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A significant accommodation facility offering a range of services, often including rooms, food, and entertainment, for travelers and guests.