Mzimba Sofa Company Has Developed the Following Manufacturing Overhead Standards

question 30

Multiple Choice

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours. The above standards were based on an expected annual volume of 20,000 sofas. The actual results last year were as follows:
-What was Mzimba's variable overhead efficiency variance?

• A) $8,766 unfavorable
• B) $15,552 unfavorable
• C) $17,280 unfavorable
• D) $51,200 favorable

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Definitions:

Archaea

One of the two prokaryotic domains. The absence of peptidoglycan in their cell walls sets them apart from the bacteria. Compare with bacteria.

70S Ribosomes

Ribosomes typical in prokaryotes and mitochondria, involved in the synthesis of proteins, comprised of a 50S and a 30S subunit.

Crenarchaeota

A phylum of Archaea that includes thermophilic, acidophilic, and psychrophilic microbes, often found in extreme environments.

Sulfur Bacteria

A group of bacteria that oxidize sulfur compounds to obtain energy, playing a key role in the sulfur cycle in the environment.