The Following Information for the Past Year Is Available from Thinnews

question 28

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 factory overhead efficiency variance (to the nearest whole dollar) is:

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

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Definitions:

African-Americans

An ethnic group in the United States with ancestors from Africa, particularly those whose ancestors were enslaved and brought to the US.

Hispanics

A demographic group in the United States composed of individuals who come from, or whose ancestors came from, Spanish-speaking countries.

Labor Force

The total number of people who are eligible to work and are either employed or actively looking for employment.

Organizational Climates

The shared perceptions and attitudes about an organization, influencing its members' behavior and attitudes towards work and each other.