Fletcher Company Collected the Following Data Regarding Production of One

question 193

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. $\begin{array}{lrl}\text { Direct labor standard (2 hrs. @ } \$ 12.75 / \mathrm{hr} .) & \$ 25.50& \text { per finished unit} \\\text { Actual direct labor hours } & 81,500& \text { hrs.} \\\text { Budgeted units } & 42,000& \text { units} \\\text { Actual finished units produced } & 40,000 & \text { units}\\\text { Standard variable OH rate }(2 \mathrm{hrs} . @ \$ 14.30 / \mathrm{hr} .) & \$ 28.60& \text { per finished unit} \\\text { Standard fixed OH rate }(\$ 336,000 / 42,000 \text { units) } & \$ 8.00 & \text { per unit}\\\text { Actual cost of variable overhead costs incurred } & \$ 1,140,000 \\\text { Actual cost of fixed overhead costs incurred } & \$ 338,000\end{array}$

• A) $25,450 favorable.
• B) $4,000 favorable.
• C) $4,000 unfavorable.
• D) $21,450 unfavorable..
• E) $21,450 favorable.

---

Definitions:

White Men

Describes individuals who are male and identify as belonging to the white racial group, often discussed in contexts involving privilege or social dynamics.

Institutional Racism

Systemic patterns of discrimination perpetuated by established and respected forces in society, such as governments, businesses, and schools.

Affirmative Action

A policy or a set of policies designed to promote the opportunities of historically marginalized groups in areas such as employment and education.

Educational Opportunities

Access to and the availability of educational resources and institutions that facilitate learning and personal development.