The Following Information for the Past Year Is Available from Thinnews

question 25

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 factory overhead efficiency variance, to the nearest dollar, is:

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

Understand the use of comparison and logical operators in database queries.

Recognize the utility of aggregate functions in queries for statistical analysis.

Understand how to modify field properties and captions in query results to enhance readability and interpretation.

Understand how to calculate the return on assets for a segment.

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Definitions:

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Inputs

Resources used in the production process, such as labor, capital, materials, and energy.

Production Isoquant

A production isoquant is a curve that represents all combinations of inputs that yield the same level of output, used in production theory to analyze efficient production.

Inputs

The resources, labor, materials, and capital, that are used in the production process to create goods or services.