Use This Information to Answer the Questions That Follow

question 163

Multiple Choice

Use this information to answer the questions that follow.
​
*Actual hours are equal to standard hours for units produced.​
-The total factory overhead cost variance is

• A) $4,866.75 unfavorable
• B) $4,866.75 favorable
• C) $8,981.75 favorable
• D) $8,981.75 unfavorable

---

Definitions:

Available-For-Sale

A classification used in accounting for financial assets, denoting securities that a company plans to sell but not immediately or in the near term.

Vertically Integrated

A strategy where a company expands its operations into different stages of production within the same industry, from raw materials to finished products.

Horizontally Growth

Expansion strategy whereby a company grows by acquiring or merging with firms in the same industry at the same level of the supply chain.

Synergies

The additional value created by the combination of two or more companies, parts, or processes to achieve greater performance as a whole than the sum of their individual parts.