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:

Cleanup Site

A location that requires removal or treatment of pollution or contaminants from the environment.

CERCLA

The Comprehensive Environmental Response, Compensation, and Liability Act, a U.S. law designed to facilitate the cleanup of hazardous waste sites and to hold responsible parties accountable for environmental damage.

Toxic Waste Dump

A site for the disposal of hazardous materials that can pose a threat to health, safety, or the environment.

Clean Water Act

A significant United States federal law establishing the structure for regulating water pollution and aiming to maintain and restore the cleanliness of waters.