Figures Incorporated Makes a Single Product--An Electrical Motor Used in Many

question 107

Multiple Choice

Figures Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The variable overhead efficiency variance is:

• A) $5,389 F
• B) $5,389 U
• C) $4,896 F
• D) $4,896 U

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of the values by the count of the values.

Population Mean

The average value of all elements in an entire population, representing a summary measure of the central tendency of the population.