The Following Information for the Past Year Is Available from Thinnews

question 28

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

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

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Definitions:

Fund-raising

The process of gathering monetary donations or other resources, often for non-profit organizations, through a variety of activities and appeals.

Fund-raising Activity

The act or process of gathering financial support for a cause, project, or organization, often through donations or events.

Fund-raising Process

The systematic approach to soliciting and gathering voluntary contributions of money or resources.

Nonprofit Organization

An organization that operates for a public or social benefit, rather than to generate profit for owners or shareholders.