(Appendix 11A)Tropiano Electronics Corporation Has a Standard Cost System in Which

question 97

Multiple Choice

(Appendix 11A) Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company had budgeted its fixed manufacturing overhead cost at $62, 100 for the month and its level of activity at 3, 200 MHs.The actual total fixed manufacturing overhead was $61, 600 for the month and the actual level of activity was 3, 000 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

• A)$3, 381 Unfavorable
• B)$500 Favorable
• C)$500 Unfavorable
• D)$3, 381 Favorable

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Definitions:

Residual

The difference between observed values and the expected values in a statistical model, indicating the error or deviation from the predicted model outcome.

R Squared

A statistical measure of how close the data are to a fitted regression line, indicating the proportion of variance in the dependent variable explained by the independent variable(s).

Electricity Usage

The amount of electrical energy consumed by a household, organization, or area within a specific period.

Linear Model

A statistical model that assumes a linear relationship between the input variables (predictors) and a single output variable.