The Following Standards for Variable Manufacturing Overhead Have Been Established

question 18

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{|l|r|}\hline \text { Standard hours per unit of output } & 5.6 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 12.00 \text { per hour } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours } & 2,600 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 31,330 \\\hline \text { Actual output } & 400 \text { units } \\\hline\end{array}$
What was the variable overhead spending variance for the month?

• A) $130 favourable.
• B) $130 unfavourable.
• C) $4,338 unfavourable.
• D) $4,450 unfavourable.

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Definitions:

Reinforcement

A principle in behavior theory in which a behavior is strengthened or made more likely to occur in the future by consequences that follow it.

Secondary Reinforcer

A stimulus that gains its reinforcing capability through its association with a primary reinforcer, such as money or praise.

Disequilibrium Principle

A concept in learning and education suggesting that learning occurs when an individual encounters cognitive conflict or disequilibrium, prompting adaptation and new learning to restore balance.

High-Frequency Behavior

Behavior that occurs at a high rate or with great frequency, often requiring intervention or modification in behavioral studies.