Hoag Corporation Applies Manufacturing Overhead to Products on the Basis

question 145

Multiple Choice

Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below:
The company based its original budget on 2,600 machine-hours.The company actually worked 2,280 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,080 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

• A) $4,352 Favorable
• B) $4,352 Unfavorable
• C) $7,072 Unfavorable
• D) $7,072 Favorable

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Definitions:

Feared Stimuli

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Two-Factor Theory

A psychological theory proposing that human emotions are based on two factors: physiological arousal and cognitive labeling of that arousal.

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Systematic Desensitization

A behavioral therapy technique used to reduce phobias or anxiety through gradual exposure to the feared object or situation combined with relaxation techniques.