The Following Information Is Available from the Terry Company The Fixed Overhead Spending Variance for Terry Company for the

question 84

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 fixed overhead spending variance for Terry Company for the period, to the nearest whole dollar, is:

• A) $600 favorable.
• B) $800 unfavorable.
• C) $1,000 unfavorable.
• D) $1,200 unfavorable.
• E) $1,200 favorable.

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Definitions:

Working Prototype

An operational version of a product developed to test its functionality and design prior to mass production.

Product Technology

The incorporation of technological advancements into the development and improvement of a product.

Innovation Process

A systematic approach to creating new ideas, products, or methods, typically involving stages such as ideation, development, and implementation.

Service Economy

An economy or sector characterized by the dominance of services over goods, including industries such as retail, healthcare, and information technology.