Answer the Following Questions Using the Information Below:
Hobart Corporation

question 100

Multiple Choice

Answer the following questions using the information below:
Hobart Corporation manufactured 20 000 heaters during November.The overhead cost-allocation base is $15.75 per machine-hour.The following variable overhead data pertain to November:
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Production } & 20000 \text { units } & 22000 \text { units } \\\text { Machine-hours } & 7875 \text { hours } & 9000 \text { hours } \\\text { Variable overhead cost per machine-hour: } & \$ 15.50 & \$ 15.75\end{array}$$
-What is the total variable overhead variance?

• A)$1968.75 favourable
• B)$6801.14 unfavourable
• C)$6801.14 favourable
• D)$1968.75 unfavourable

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Definitions:

Organizational Reward Systems

Are structured schemes to compensate, recognize, and motivate employees on a collective basis, aligning individual achievements with the organization's goals.

Reinforcement Theory

A theory that suggests behavior is influenced by its consequences, with rewards encouraging the behavior's recurrence.

Equity Theory

A concept in social psychology that explains how individuals perceive fairness in distribution of resources in interpersonal relationships.

Goal-Setting Theory

A psychological theory suggesting that establishing specific, measurable, achievable, relevant, and time-bound goals can significantly influence motivation and enhance performance.