Exhibit 10-1
Flatland Company Applies Fixed Manufacturing Overhead Costs to Products

question 49

Multiple Choice

Exhibit 10-1
Flatland Company applies fixed manufacturing overhead costs to products based on direct labor hours.Information for the month of April appears below.Flatland expects to produce and sell 18,000 units for the month.
Below is budget information for Flatland Company.
$$\begin{array} { l l } \text { Budgeted fixed overhead costs } & \$ 270,000 \\\text { Budgeted direct labor hours } & 90,000 \text { hours } \\\text { Standard direct labor hours per unit } & 5 \text { hours per unit } \\\text { Actual production } & 17,000 \\\text { Actual fixed overhead costs } & \$ 280,000\end{array}$$
-Refer to Exhibit 10-1.Based on this information,what is the fixed overhead spending variance?

• A)$15,000 favorable
• B)$10,000 unfavorable
• C)$15,000 unfavorable
• D)$10,000 favorable
• E)None of the answer choices is correct.

Analyze the theoretical foundations and policy recommendations of Keynesian, monetarist, and new classical economists.

Comprehend Milton Friedman's monetarist theories and their impact on economic policy.

Examine the monetarists' perspective on the relationship between the money supply and interest rates.

Understand the concept of rational expectations and its implications for economic policy effectiveness.

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Definitions:

Preliminary Studies

Initial research or analysis conducted to assess the viability, cost, and potential impact of a proposed project or initiative.

Public Relations Activity

Efforts undertaken by a company or organization to manage and shape public perception of its image, products, or services.

Employee Picnic

A social event organized by a company for its employees to relax and build team spirit.

Testimonial Messages

Advertising messages where a person, often a celebrity or satisfied customer, endorses a product or service based on their personal experience.