Burkett Company Uses a Standard Cost System

question 4

Multiple Choice

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct labour hours 9,000
Actual direct labour hours 10,000
Fixed overhead $190,000
Variable overhead $185,000
The fixed overhead production volume variance was:

• A)$15,000 F
• B)$20,000 U
• C)$10,000 F
• D)$10,000 U

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Definitions:

Instrumental Values

Instrumental values reflect a person’s beliefs about the means to achieve desired ends.

Uncertainty Avoidance

A cultural dimension that describes the degree to which members of a society attempt to cope with anxiety by minimizing uncertainty.

Hofstede's Framework

A model that identifies and analyzes five dimensions of cultural differences across countries, impacting workplace behaviors and values.

Values

Core beliefs or principles that guide and influence behaviors and decision-making.