Neeb Corporation Manufactures and Sells a Single Product

question 276

Multiple Choice

Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Actual results for January:

-The spending variance for manufacturing overhead in January would be closest to:

• A) $2,216 U
• B) $2,260 F
• C) $2,260 U
• D) $2,216 F

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Definitions:

Tacit Knowledge

People’s underlying and implicit beliefs about a task or an event.

Explicit Knowledge

Knowledge that can be articulated, codified, and communicated; it includes facts, information, and skills that a person can convey in a systematic and formal manner.

Spatial Updating

The processes by which individuals continually revise their mental representation of where things in the environment are with respect to their current location.

Demand Characteristics

Demand characteristics refer to the subtle cues or features in an experimental environment that may influence participants' behaviors or responses, thereby affecting the validity of the experiment.