Griffen Corporation Uses a Standard Costing System

question 83

Multiple Choice

Griffen Corporation uses a standard costing system. Information for the month of May is as follows: The overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
What is the fixed overhead spending variance for Griffen?

• A) $2,000 U
• B) $8,000 U
• C) $4,000 U
• D) $20,000 U

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Definitions:

Sample Size

The number of observations or data points collected in a sample from a larger population.

Normal Distribution

A symmetric, bell-shaped distribution characterized by its mean and standard deviation, where most observations cluster around the mean.

Sample Means

The arithmetic average of a set of values or observations, calculated as the total sum divided by the number of observations in the sample.

Sample Size

The number of observations or units selected from a population for the purpose of statistical analysis.