Michetti Corporation Applies Manufacturing Overhead to Products on the Basis

question 18

Multiple Choice

Michetti Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 4,300 machine-hours.The company actually worked 4,140 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,200 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

• A)$660 favorable
• B)$660 unfavorable
• C)$850 unfavorable
• D)$850 favorable

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Definitions:

Recall

The act of retrieving information or events from the past in the absence of external cues, often measured in psychological tests.

Recognition

The cognitive process of identifying and understanding something previously learned or experienced.

Relearning

The process of learning material or skills again, often more quickly than the first time, after some period of forgetting.

Long-Term Memory

The phase of memory responsible for storing information for an extended period, ranging from a few days to a lifetime.