Armstrong Products Refer to the Armstrong Products Information Below

question 37

Multiple Choice

Armstrong Products
Refer to the Armstrong Products information below.
Armstrong Products applies fixed overhead at a rate of $3 per direct labour hour. Each unit produced is expected to take 2 direct labour hours. Armstrong expected production in the current year to be 10 000 units but 9000 units were actually produced. Actual direct labour hours were 19 000 and actual fixed overhead costs were $62 000.
-Armstrong's fixed overhead spending variance is:

• A) $8000 F
• B) $8000 U
• C) $2000 F
• D) $2000 U

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Definitions:

Ineffective Encoding

A failure in the process of storing new information in a manner that makes it easy to retrieve later, often leading to forgetfulness.

Elizabeth Loftus

A cognitive psychologist best known for her work on the malleability of human memory and the misinformation effect.

Repressed Memories

Memories unintentionally hidden from consciousness due to their connection with significant trauma or stress.

Memory Malleability

The concept that human memory is not static and can be influenced or changed by various factors, including suggestion, misinformation, and misattribution.