The Management of Alpha Company Has Calculated the Following Variances

question 137

Multiple Choice

The management of Alpha Company has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \\\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \\\hline \text { Variable overhead efficiency variance } & 5,000 \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 3,050 \mathrm {~F} \\\hline\end{array}$$ Calculate the total variable overhead variance of Alpha Company.

• A) $3,000 F
• B) $10,050 F
• C) $7,000 F
• D) $3,050 F

Understand how government budget deficits impact the open economy, including effects on real interest rates, domestic investment, and trade balance.

Comprehend the relationship between tax credits for investment and shifts in the demand for loanable funds and supply of dollars in the foreign-currency exchange market.

Recognize the effects of capital flight on demand for loanable funds, supply of dollars, and net capital outflows in the foreign-currency exchange market.

Analyze the impact of a government default on its debt on the country's real interest rates and currency valuation in the open-economy macroeconomic model.

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Definitions:

Neuromuscular Disease

A broad term covering disorders that affect the nerves that control voluntary muscles and the neuromuscular junctions.

Proprioception

The ability to sense stimuli arising within the body regarding position, motion, and equilibrium, often referred to as the "sixth sense."

Hemiplegia

A form of paralysis affecting one side of the body, often caused by stroke or brain injury.

Foot Drop

A gait abnormality in which the dropping of the forefoot happens due to weakness, irritation or damage to the peroneal nerve, or paralysis of the muscles in the anterior portion of the lower leg.