The Following Information for the Past Year Is Available from Thinnews

question 146

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 two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume variance, to the 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:

Product Development

The process of bringing a new product from concept to market, including design, manufacturing, and marketing.

College Community

A group of people who share a connection to an educational institution, including students, faculty, and staff.

Mind Shift

A significant change in perspective or way of thinking about something, often leading to new insights or attitudes.

Considered Cheating

Engaging in dishonest practices in academic or professional settings, such as copying others' work without permission, or using unauthorized materials in order to gain unfair advantage or achievements.