Nexus Industries Uses a Standard Costing System to Apply Manufacturing

question 10

Multiple Choice

Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In May, Nexus anticipated producing 2050 units with fixed manufacturing overhead costs allocated at $8.4 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3300 units and actual fixed manufacturing overhead costs were $29,000. What was Nexus' fixed manufacturing overhead budget variance in May?

• A)$14,050 favorable
• B)$14,050 unfavorable
• C)$26,250 favorable
• D)$26,250 unfavorable

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Definitions:

Storm And Stress

A term used to describe the tumultuous period of adolescence marked by conflicts with parents, mood disruptions, and risk behaviors.

Freud

Sigmund Freud was an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Hall

G. Stanley Hall, an American psychologist and educator who is considered one of the founding figures of child psychology and educational psychology.

Key Transitions

Significant changes or periods of transformation in an individual's life or within a system that mark a passage from one state or phase to another.