The Following Information for the Past Year Is Available from Thinnews

question 7

Multiple Choice

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 24,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,000 \\\text { Budgeted fixed overhead cost } & \$ 11,000 \\\text { Actual machine hours } & 5,000 \\\text { Standard machine hours allowed for the units manufactured } & 4,800 \\\text { Denominator volume-machine hours } & 5,500 \\\text { Standard variable overhead rate per machine hour } & \$ 3.00\end{array}$ The fixed factory overhead production-volume variance, to the nearest whole dollar, is:

• A) $600 unfavorable.
• B) $1,000 favorable.
• C) $1,400 unfavorable.
• D) $1,500 favorable.
• E) $2,100 favorable.

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Definitions:

Externally Oriented

describes an outward focus, typically pertaining to how organizations or individuals prioritize external factors or stakeholders in their decision-making processes.

Organizational Borders

The boundaries that define the edges of an organization, distinguishing it from its environment and other organizations, and shaping the flow of information and resources.

Social Comparison Theory

A psychological theory suggesting that individuals determine their own social and personal worth based on how they stack up against others.

Disadvantaged Group

represents communities or individuals facing social, economic, or political hurdles, limiting access to resources and opportunities for advancement.