Mzimba Sofa Company Has Developed the Following Manufacturing Overhead Standards

question 21

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 fixed manufacturing overhead volume variance?

• A) $12,080 favorable
• B) $42,920 unfavorable
• C) $61,000 unfavorable
• D) $73,080 favorable

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Definitions:

Team Effectiveness

The degree to which a team is able to achieve its goals and objectives, often influenced by factors such as communication, leadership, and group cohesion.

Employment-Stability Policy

A strategy or policy adopted by an organization aimed at providing job security for its employees and minimizing turnover.

Labour Specialization

The division of labor where each worker or group of workers focuses on a specific task or set of tasks, enhancing productivity through expertise and efficiency.

Labour Costs

The total expenditure borne by employers for employing staff, including wages, benefits, and taxes.