Tyro Company Has a Standard Cost System That Applies Manufacturing

question 42

Multiple Choice

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs) .The following information is available:
Based on these data,what was the variable overhead spending variance?

• A) $750 unfavourable.
• B) $950 favourable.
• C) $1,500 unfavourable.
• D) $1,700 favourable.

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Definitions:

Disadvantages

The negative or less favorable aspects of a situation, decision, or business strategy.

Franchisor

A business entity that allows individuals or other businesses to operate a location or outlets under its brand name, providing a business model, brand, and support in exchange for fees and adherence to its operational guidelines.

Loss Of Control

The reduction or elimination of an individual's or entity's power to make decisions in a company or over its assets.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.