(Appendix 11A)Diseth Corporation Applies Manufacturing Overhead to Products on the Basis

question 6

Multiple Choice

(Appendix 11A) Diseth Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 5, 300 machine-hours.The company's total budgeted fixed manufacturing overhead is $12, 720.In the most recent month, the total actual fixed manufacturing overhead was $12, 370.The company actually worked 5, 350 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5, 540 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

• A)$350 Favorable
• B)$120 Favorable
• C)$120 Unfavorable
• D)$576 Favorable

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Definitions:

State-Owned Enterprise

An organization that is owned, controlled, and operated by a government entity.

Political Unrest

A state of disagreement or conflict within a country due to differing opinions on governance, policy, or leadership.

Risk Insurance

A financial product that provides a safeguard against potential losses or damages, transferring the risk from an individual or entity to an insurance provider.

Deregulating

The reduction or elimination of government power in a particular industry, usually to create more competition and increase efficiency.