A Manufacturer of Playground Equipment Has a Standard Costing System

question 231

Multiple Choice

A manufacturer of playground equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 3,000 \mathrm{MHs} \\\hline \text { Fixed Overhead Cost } & \$ 40,650 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 3,400 \mathrm{MHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,172 \mathrm{MHs} \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 41,600 \\\hline\end{array}$
-What was the fixed overhead budget variance for the period,rounded to the nearest dollar?

• A) $950 unfavourable.
• B) $1,381 unfavourable.
• C) $2,790 favourable.
• D) $4,470 unfavourable.

---

Definitions:

Mental Dysfunction

A broad term that refers to abnormalities in cognitive, emotional, or behavioral functioning, often impairing daily life.

Lesser Crime

An offense that is considered less severe in terms of legal classification and potential punishment.

Investigative Psychology

This is the intersection of psychology, criminology, and forensic science, primarily focused on the analysis of criminal behavior.

Serial Killer

An individual who commits a series of murders, often with no apparent motive and typically following a characteristic, predictable behavior pattern.