Exter Manufacturing Experienced the Following Activity Over the Last Four

question 70

Multiple Choice

Exter Manufacturing experienced the following activity over the last four years. The firm's estimated fixed overhead allocation rate was unchanged over the 4 years at $200 per unit, based on budgeted fixed overhead of $200,000 and 1,000 units of output. The volume variance is closed to the cost of goods sold each year. Exter maintains an absorption costing system. The volume variance for Year 2 is

• A) $40,000 Unfavorable
• B) $60,000 Favorable
• C) $100,000 Unfavorable
• D) $20,000 Favorable

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Definitions:

Phallic Stage

A phase in Freudian psychosexual development, occurring from about ages 3 to 6, where the child's libido centers upon their genitalia as the erogenous zone.

Psychodynamic Perspectives

A theory in psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experiences.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and psychological identity.

Developmentally

Pertaining to the process of growth and change over the lifespan, including physical, cognitive, emotional, and social development.