Zero Company's Standard Factory Overhead Rate Is $3

question 49

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.

What was the fixed factory overhead spending variance (to the nearest whole dollar) for Zero Company in December?

• A) $50 favorable.
• B) $225 favorable.
• C) $425 unfavorable.
• D) $560 unfavorable.
• E) $610 unfavorable.

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Definitions:

Precise Dose

An accurately measured amount of a medication or substance to ensure optimal therapeutic effect with minimal side effects.

mL

A shortened form for milliliters, a unit of volume in the metric system used to measure liquids.

Intramuscular Injections

A method of administering medication deep into the muscles, allowing for faster absorption than subcutaneous injections.

mg

Abbreviation for milligram, a unit of mass equal to one thousandth of a gram, often used in medication dosages.