The Following Information Is Available from the Terry Company What Is the Total Overhead Spending Variance for Terry Company

question 36

Multiple Choice

The following information is available from the Terry Company: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 25,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,400 \\\text { Budgeted fixed overhead expenses } & \$ 11,000 \\\text { Actual direct labor hours (DLH) worked } & 4,400 \\\text { Standard DLHs for this period's production (output) } & 4,000 \\\text { Standard variable overhead rate per DLH } & \$ 3.00 \\\text { Standard fixed overhead rate per DLH } & \$ 2.50\end{array}$ What is the total overhead spending variance for Terry Company for the period, to the nearest whole dollar?

• A) $800 unfavorable.
• B) $1,000 unfavorable.
• C) $1,200 unfavorable.
• D) $1,400 unfavorable.
• E) $2,000 unfavorable.

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Definitions:

Metal Alloy

A mixture of two or more elements, where at least one is a metal, created to enhance properties such as strength, durability, or resistance to corrosion.

Zinc

A chemical element with the symbol Zn and atomic number 30, often used for galvanizing iron and steel to protect against rust.

Copper

A chemical element with symbol Cu and atomic number 29, known for its high thermal and electrical conductivity.

Production Function

A mathematical representation describing the relationship between input factors and the output of goods or services.