(Appendix 10A) a Manufacturer of Playground Equipment Has a Standard

question 14

Multiple Choice

(Appendix 10A) A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
The following data pertain to operations for the most recent period:

-The fixed manufacturing overhead budget variance for the period is closest to:

• A) $3,595 U
• B) $550 F
• C) $2,763 U
• D) $784 F

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Definitions:

Labor Shortages

A situation where the demand for workers exceeds the supply in a particular market or industry.

Surpluses

Instances in which supply exceeds demand, resulting in excess goods, services, or resources.

Natural Attrition

The reduction in workforce due to employees leaving naturally through retirement, resignation, or death, rather than through layoffs.

Early Retirement

An option allowing individuals to retire before the traditional retirement age, often with specific pension or benefits arrangements.