The Following Information Is Available from the Terry Company What Was the Variable Overhead Efficiency Variance for the Period

question 74

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 was the variable overhead efficiency variance for the period, to the nearest whole dollar?

• A) $600 favorable.
• B) $800 unfavorable.
• C) $1,200 unfavorable.
• D) $1,400 unfavorable.
• E) $2,000 unfavorable.

Recognize the accounts that increase with debits and those that increase with credits.

Understand how different transactions impact stockholders' equity.

Know the initial point of entry for accounting transactions.

Grasp the concept of the double-entry accounting system.

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Impulses

Sudden, involuntary inclinations to act or respond to something without conscious thought.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Antisocial

Behaviors that go against social norms and can harm or lack consideration for the well-being of others.