Zero Company's Standard Factory Overhead Rate Is $3

question 135

Multiple Choice

Zero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH) , calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,150, of which $1,350 is fixed overhead. For December, the actual factory overhead cost was $3,800 for 840 actual DLHs, of which $1,300 was for fixed factory overhead.

Assuming the use of a two-way breakdown (decomposition) of the total overhead variance, what is the factory overhead efficiency variance for Zero Company in December (to the nearest whole dollar) ?

• A) N/A—this variance does not exist under a two-way breakdown of the total overhead variance.
• B) $90 unfavorable.
• C) $150 unfavorable.
• D) $225 favorable.
• E) $425 unfavorable.

Discuss the impact of psychological conditions and syndromes, such as Korsakoff's syndrome, on memory.

Analyze factors that can distort memory, including misinformation, leading questions, and reconstruction.

Explore strategies for improving memory retention and recall.

Illustrate the significance of memory in everyday contexts and professional practices.

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Definitions:

Budget Line

An illustrative depiction of every possible pairing of two items that could be bought within a set budget at unchanging prices.

Slope

A measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Good A

A generic term often used in economics to describe a type of product or commodity.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at prevailing prices.