The Following Information Is Available from the Terry Company The Fixed Overhead Spending Variance for Terry Company for the

question 84

Multiple Choice

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

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

---

Definitions:

Cervical Spine

The portion of the spine located in the neck, consisting of seven cervical vertebrae that support the head and connect it to the rest of the spine.

Nitrofurantoin

An antibiotic medication used to treat and prevent urinary tract infections by inhibiting bacterial growth.

Room Warm

Maintaining an environmental temperature in a room that feels comfortably warm for the occupants.

Stomach Sleeping

The practice of resting or lying down with the abdomen facing downward, often discouraged for infants due to the risk of Sudden Infant Death Syndrome (SIDS).