The Following Information for the Past Year Is Available from Thinnews

question 146

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: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 24,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,000 \\\text { Budgeted fixed overhead cost } & \$ 11,000 \\\text { Actual machine hours } & 5,000 \\\text { Standard machine hours allowed for the units manufactured } & 4,800 \\\text { Denominator volume-machine hours } & 5,500 \\\text { Standard variable overhead rate per machine hour } & \$ 3.00\end{array}$ Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume variance, to the nearest whole dollar, is:

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

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Definitions:

Willpower Exercises

Practices designed to strengthen one's ability to resist short-term temptations in order to meet long-term goals.

Willpower Resources

The mental energy or strength used to exert self-control or make choices aligned with personal goals and values.

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Regular patterns or behaviors related to how, when, or what we eat.

Fresh Popcorn

Newly made popcorn, characterized by its warm temperature and crisp texture, often associated with movie theaters and snacking.