The Following Information for the Past Year Is Available from Thinnews

question 43

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 three-variance breakdown (decomposition) of the total factory overhead variance, the factory overhead efficiency variance (to nearest whole dollar) is:

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

---

Definitions:

Regionalization

Is the division of the world into different and often competing economic, political, and cultural areas.

Sociologists

Scholars and specialists who study society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that develop when people interact and work together.

Source

The origin or provider of information, materials, or evidence, used in various contexts including research, journalism, and supply chains.

Globalization

is the process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence.