Gerhan Company's Flexible Budget for the Units Manufactured in May

question 9

Multiple Choice

Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH) , based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 5,000 DLHs and incurred $16,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead.

What is the fixed factory overhead spending variance (to the nearest whole dollar) in December for Gerhan Company?

• A) $0.
• B) $180 unfavorable.
• C) $300 favorable.
• D) $480 unfavorable.
• E) $680 unfavorable.

Understand the concepts and significance of organizational development (OD) and total quality management (TQM) in organizational change.

Identify the different techniques and tools used in organizational development and total quality management.

Understand the role of surveys and feedback in organizational development efforts.

Distinguish between incremental and radical changes in organizational processes through TQM and reengineering.

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Definitions:

Cohabiting

Living together in a romantic relationship without being legally married.

Psychosocial Development

The process of changes in an individual's psychological and social functioning over the course of their life span.

Love Relationships

Emotional connections and bonds formed through affection, attraction, and commitment between individuals, often characterized by feelings of love and intimacy.

Political Party

An organized group of people with similar political aims and opinions, seeking to influence public policy by getting its candidates elected to public office.