The Following Information Is Available from the Terry Company What Was the Variable Overhead Efficiency Variance for the Period

question 74

Multiple Choice

The following information is available from the Terry Company: $\begin{array}{lrr}\text { Actual total factory overhead cost incurred } & \$ 25,000 \\\text { Actual fixed overhead cost incurred } & \$ 10,400 \\\text { Budgeted fixed overhead expenses } & \$ 11,000 \\\text { Actual direct labor hours (DLH) worked } & 4,400 \\\text { Standard DLHs for this period's production (output) } & 4,000 \\\text { Standard variable overhead rate per DLH } & \$ 3.00 \\\text { Standard fixed overhead rate per DLH } & \$ 2.50\end{array}$ What was the variable overhead efficiency variance for the period, to the nearest whole dollar?

• A) $600 favorable.
• B) $800 unfavorable.
• C) $1,200 unfavorable.
• D) $1,400 unfavorable.
• E) $2,000 unfavorable.

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Definitions:

Catholic Reformation

A movement within the Catholic Church in the 16th century aimed at making internal reforms and countering the Protestant Reformation.

Scientific Revolution

A period of major advancements in science and technology during the 16th to 18th centuries, leading to significant changes in society and the view of the natural world.

Protestantism

A form of Christian faith and practice that originated with the Reformation, a movement against what its followers perceived to be errors in the Roman Catholic Church.

Scientific Revolution

A period, primarily during the 16th and 17th centuries, marked by major advances and changes in scientific thought and methodologies, significantly impacting the understanding of the natural world.