The Following Information for the Past Year Is Available from Thinnews

question 43

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

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

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Definitions:

Specific Problem

A clearly defined issue or challenge that requires a solution or resolution.

Intervention Skills

Refers to the abilities and techniques used by professionals to intervene in situations to provide assistance, support, or influence outcomes.

Genuineness

Refers to the quality of being sincere, honest, and authentic in one’s interactions and self-presentation.

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Issues or situations that require a choice between competing moral principles, often impacting the well-being of individuals or communities and involving considerations of right and wrong.