Fixed Overhead Was Budgeted at $250,000, and 25,000 Direct Labour

question 50

Multiple Choice

Fixed overhead was budgeted at $250,000, and 25,000 direct labour hours were budgeted. Suppose the fixed overhead volume variance was $10,000 favourable and the fixed overhead spending variance was $6,000 unfavourable. How much fixed overhead was applied?

• A) $194,000
• B) $202,000
• C) $206,000
• D) $260,000

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Definitions:

Targeted Share Repurchase

A strategy used by companies to buy back shares specifically from certain shareholders, often to avoid a takeover threat.

Supermajority

A requirement for a high percentage of votes, typically greater than a simple majority, to approve a proposal or motion.

Defensive Tactic

Strategies employed by companies to prevent or deter unwanted takeover bids or corporate raiders.

Flip-Over Provision

This provision is a defensive strategy used by companies in their shareholder rights plans to deter hostile takeovers, allowing shareholders to buy shares of the acquirer at a discount after the takeover.