The Following Information for the Past Year Is Available from Thinnews

question 16

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 three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance, to the nearest whole dollar, is:

• A) $0.
• B) $600 unfavorable.
• C) $1,400 favorable.
• D) $1,400 unfavorable.
• E) $2,000 favorable.

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Definitions:

Race

A socially constructed category based on physical characteristics, ancestry, historical affiliation, or shared culture, often used to classify humans.

Genetic Differences

Variations in the DNA sequences among individuals that contribute to the biological diversity of organisms.

Racial Groups

Designates categories of humans based on physical characteristics, ancestry, genetics, or social relations, often constructed socially and culturally.

Genes

Segments of DNA located on chromosomes, which contain the instructions necessary for the development, functioning, and reproduction of organisms.