$\text { The Litton Company has established standards as follows: }$

question 199

Multiple Choice

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-What was the variable overhead spending variance?

• A) $220 favourable.
• B) $220 unfavourable.
• C) $240 favourable.
• D) $240 unfavourable.

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Definitions:

Nodes of Ranvier

Gaps in the myelin sheath of a nerve fiber where the axon is exposed, allowing for the rapid transmission of nerve impulses through saltatory conduction.

Internodes

Sections of a plant stem between two nodes, where leaves and branches are attached.

Glial Cells

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons.

Choroid Plexus

A network of blood vessels in each ventricle of the brain, involved in the production of cerebrospinal fluid.