Indian Company Has the Following Information Available for Variable Overhead

question 65

Multiple Choice

Indian Company has the following information available for variable overhead costs.Direct labor hours are the cost driver for variable overhead costs.
$\begin{array}{ll}\text { Actual variable overhead costs } & \$ 5,120 \\\text { Standard variable overhead costs } & \$ 3.00 \text { per hour } \\\text { Actual direct labor hours } & 2,000 \text { hours } \\\text { Standard direct labor hours per unit } & 3 \text { hours } \\\text { Units produced } & 1,000\end{array}$
What is the variable overhead spending variance?

• A) $880 Favorable
• B) $1,000 Unfavorable
• C) $3,880 Favorable
• D) $3,880 Unfavorable

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Definitions:

Cynicism Toward Politics

A negative attitude towards politics and political institutions, characterized by disbelief in the sincerity or goodness of political actors and processes.

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The perspective or approach adopted for planning and decision-making to achieve desired outcomes.

Issue Frame

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Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.