The Following Information Is Available from the Terry Company What Is the Variable Overhead (VOH) Spending Variance for Terry

question 58

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 variable overhead (VOH) spending variance for Terry Company for the period, to the nearest whole dollar?

• A) $600 favorable.
• B) $800 unfavorable.
• C) $1,000 unfavorable.
• D) $1,400 favorable.
• E) $1,400 unfavorable.

---

Definitions:

Homo Naledi

A species of human ancestor discovered in South Africa, noted for its unique mix of primitive and modern traits.

Primitive Hominin Traits

Basic or ancestral characteristics exhibited by early human ancestors.

Evolved

Refers to the cumulative changes in heritable traits of a population over successive generations, leading to biodiversity.

Acheulean Technology

A Stone Age technology characterized by distinctive oval and pear-shaped hand-axes, associated with early humans, particularly Homo erectus.