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.

Comprehend how the principle of gains from trade operates within and benefits an economy.

Recognize how individual spending influences the income of others in the economy.

Understand the concept of public goods and externalities as challenges to market efficiency.

Appreciate the significance of individual choices in the efficient allocation of resources.

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Definitions:

Retina

The innermost, light-sensitive layer of tissue of the eye of most vertebrates and some mollusks, processing visual information.

Organ Of Corti

Structure in the vertebrate inner ear that contains auditory receptors (also called spiral organ).

Pitch

The quality of a sound governed by the rate of vibrations producing it; the highness or lowness of a tone.

Dizziness

A sensation of spinning around and losing one's balance, often associated with disturbances in the inner ear or the vestibular system.