The Standard Variable Overhead Cost Rate for the Gordon Company

question 60

Multiple Choice

The standard variable overhead cost rate for the Gordon Company is $11.25 per unit.Budgeted fixed overhead cost is $50,000.The company budgeted 5,000 units for the current period and actually produced 4,150 finished units.What is the fixed overhead volume variance?
Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

• A)$8,500 favorable
• B)$2,100 unfavorable
• C)$2,100 favorable
• D)$8,500 unfavorable

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Definitions:

Aggressive Behavior

Actions intended to cause harm or pain to others, ranging from verbal abuse to physical violence.

Fundamental Attribution Error

The tendency to overestimate the role of personal traits and underestimate the influence of situational factors when explaining other people's behavior.

Situational Causes

Factors external to an individual that can influence behavior and outcomes in specific contexts.

Internal Explanations

Attributions that relate the causes of behavior to personal aspects such as traits, mood, abilities, or feelings.