Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System

question 58

Multiple Choice

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead.The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25.Last year Nitrol produced 84,000 vases. What was Nitrol's variable overhead rate variance for last year?

• A)$1,000 Favorable
• B)$1,060 Unfavorable
• C)$2,060 Unfavorable
• D)$9,500 Unfavorable

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Definitions:

Attribution Theory

A psychological theory that attempts to explain how individuals determine the causes of others' behavior, attributing it to internal dispositions or to external situations.

Lazy

Characterized by a lack of effort or unwillingness to expend energy in tasks.

Slow Shifts

Gradual changes or movements towards a different state or condition.

Ingratiation

A psychological technique in which an individual attempts to become more appealing to others through flattery or other forms of manipulation.