Sampson Apparel Inc. Sampson Apparel Inc. Incurred Actual Variable Overhead Expenses of $62

question 77

Multiple Choice

Sampson Apparel Inc.
Sampson Apparel Inc. incurred actual variable overhead expenses of $62 000 in the current year for the production of 10 000 units. Variable overhead was applied at a rate of $2.00 per direct labour hour and 3 direct labour hours were budgeted for each unit. The company used 29 000 direct labour hours for production.
-What was Sampson's variable overhead efficiency variance?

• A) $4000 U
• B) $4000 F
• C) $2000 U
• D) $2000 F

---

Definitions:

Encoding-specificity Principle

A principle in psychology that suggests the ease of recall of a particular memory is dependent on the similarity of the present cues to the cues at the time of memory encoding.

Sequential Processing

A cognitive operation where information is analyzed and processed in a linear, step-by-step manner, often crucial for tasks that require logical order.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.

Cognitive Architecture

The underlying structure and framework that defines how the human mind organizes and processes information and knowledge.