The Following Information for the Past Year Is Available from Thinnews

question 157

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: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 24,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,000 \\\text { Budgeted fixed overhead cost } & \$ 11,000 \\\text { Actual machine hours } & 5,000 \\\text { Standard machine hours allowed for the units manufactured } & 4,800 \\\text { Denominator volume-machine hours } & 5,500 \\\text { Standard variable overhead rate per machine hour } & \$ 3.00\end{array}$ The variable overhead spending variance, to the nearest whole dollar, is:

• A) $600 unfavorable.
• B) $1,000 favorable.
• C) $1,400 unfavorable.
• D) $1,500 favorable.
• E) $2,100 favorable.

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Definitions:

Psychiatric Approach

is a method in medicine focusing on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Preparedness

A concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular types of behaviors more easily.

Phobic Stimuli

Objects or situations that provoke an irrational and excessive fear response.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of locomotion and responsive to their environment.