The Following Information Is Available from the Terry Company What Is the Variable Overhead (VOH) Spending Variance for Terry

question 58

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 is the variable overhead (VOH) spending variance for Terry Company for the period, to the nearest whole dollar?

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

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Definitions:

Applied Psychology

The branch of psychology concerned with applying psychological principles and research to solve practical problems in various fields such as business, education, and health.

Professional Specialty

This term refers to a specialized area within a profession in which an individual focuses their expertise and skills, often requiring additional training and certification.

Gestaltists

Psychologists who study how people integrate and organize perceptual information into meaningful wholes.

Psychoanalysts

Professionals who practice psychoanalysis, a therapeutic approach that explores unconscious desires and conflicts.