Somalian Corporation Uses a Standard Costing System

question 111

Multiple Choice

Somalian Corporation uses a standard costing system. Information for the month of May is as follows: The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
What is the fixed overhead spending variance for Somalian?

• A) $4,000 (
• B) $8,000 (
• C) $2,000 (
• D) $20,000 (

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Definitions:

Strategic Plans

Long-term organizational plans that outline goals, objectives, and actions designed to achieve a competitive advantage and meet stakeholders' expectations.

Financial Plans

Detailed documents that outline an individual's or organization's present financial situation, future goals, and strategies to achieve those goals, including budgeting, investments, and risk management.

Projections

Estimates or forecasts of future financial performance or trends, often based on current data and assumptions.

Debt

Debt represents money or goods that one party owes to another under the condition that it is to be repaid at a future date, often with interest.