Armstrong Products Armstrong Products Applies Fixed Overhead at a Rate

question 1

Multiple Choice

Armstrong Products Armstrong Products applies fixed overhead at a rate of $3 per direct labor hour. Each unit produced is expected to take 2 direct labor hours. Armstrong expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were $62,000.
Refer to the Armstrong Products information above. Armstrong's fixed overhead volume variance is:

• A) $2,000.
• B) $6,000.
• C) $8,000.
• D) $ 0.

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Definitions:

Interrelated Parts

Components that are connected or related in such a way that changes in one part affect the others.

Proletariat

The class of wage-earners in a capitalist society, who, lacking substantial control over the means of production, sell their labor to live.

Bourgeoisie

The social class that owns the means of production during modern industrial capitalism, typically contrasted with the working class or proletarians.

Class Consciousness

The awareness of one's social class and the sense of shared interests with others in the same class, often in contrast to opposing classes.