The Following Information Is Available from the Terry Company The Total Overhead Flexible-Budget (FB) Variance for the Period, to

question 116

Multiple Choice

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

• A) $800 unfavorable.
• B) $1,400 unfavorable.
• C) $2,000 unfavorable.
• D) $2,600 unfavorable.
• E) $3,000 unfavorable.

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Definitions:

Removal Of Material

The process of eliminating excess or unwanted material from a workpiece to achieve a desired shape or finish.

Material Not Permitted

A specification in manufacturing or design that indicates certain materials cannot be used due to various constraints like strength, compatibility, or regulation.

Symbol

A mark, sign, or word that indicates, signifies, or is understood as representing an idea, object, or relationship.

REDRAWN

Refers to the act of producing a new version of a drawing, document, or diagram that may include revisions, updates, or clearer detail.