The Standard Variable Overhead Cost Rate for the Gordon Company

question 14

Multiple Choice

The standard variable overhead cost rate for the Gordon Company is $11.25 per unit. Budgeted fixed overhead cost is $50,000. The company budgeted 5,000 units for the current period and actually produced 4,150 finished units. What is the fixed overhead volume variance? Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

• A)$3,780 favorable
• B)$2,100 unfavorable
• C)$2,100 favorable
• D)$3,780 unfavorable

Understand the concepts of person-organization fit and its significance in HRM practices.

Recognize the strategic role of HRM in supporting the organizational core values and corporate culture.

Identify the key functions and goals of strategic human resource management in mobilizing human capital.

Understand the specifics of human resource management practices influenced by legal requirements, such as in Canada.

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Definitions:

Financial Accounting Standards Board (FASB)

The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles.

Securities and Exchange Commission (SEC)

A U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock market to protect investors.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Liabilities

Financial obligations or debts owed by a company to external parties, which must be settled over time through the transfer of economic benefits.