R&N Manufacturing Produces Music Boxes

question 169

Multiple Choice

R&N Manufacturing produces music boxes.The fixed overhead rate is $5.10 per direct labor hour,and the company budgeted for 4,400 direct labor hours for the year.During the year,R&N produced 2,500 music boxes using 4,800 direct labor hours.Actual fixed overhead for the year was $23,000.What is the company's fixed overhead spending variance?

• A) $560 favorable
• B) $560 unfavorable
• C) $1,480 favorable
• D) $1,480 unfavorable

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Definitions:

Alternating Current

An electric current that periodically reverses direction, in contrast to direct current (DC) which flows only in one direction.

Electric Power

The supply or availability of electricity for various uses, such as for lighting, heating, and powering motors, which is central to modern economies and daily life.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, regardless of where the production takes place.

1870 To 1920

A period characterized by significant industrial, social, and political changes in many countries, including rapid industrialization, the rise of labor movements, and the culmination of World War I.