Alex Corporation Has a Large Underapplied Overhead Balance in the Manufacturing

question 83

Multiple Choice

Alex Corporation has a large underapplied overhead balance in the manufacturing overhead account. This could be explained by:

• A)an unfavorable volume variance, assuming all other variances are zero.
• B)a favorable volume variance, assuming all other variances are zero.
• C)standard hours allowed for the period's output being greater than denominator hours for the period.
• D)favorable total variance for overhead.

---

Definitions:

Optimistic Explanatory Style

The tendency to attribute positive events to personal, permanent, and pervasive causes, and negative events to external, temporary, and specific ones.

Medical Procedures

Standardized actions performed by healthcare professionals to diagnose, treat, or prevent health conditions.

Pessimistic Explanatory Style

The tendency to explain negative events as being pervasive, personal, and permanent, often leading to feelings of helplessness.

Recover

The process of returning to a normal state of health, mind, or strength after experiencing illness, trauma, or disruption.