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.

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Comparative Negligence

A principle of tort law that compares the fault of each party involved in an accident and allocates the damages accordingly.

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