Atrex Company Determined That Its Variable Overhead Spending Variance Was

question 37

Multiple Choice

Atrex Company determined that its variable overhead spending variance was $10 000 unfavourable for the year. Actual variable overhead was $100 000 for the year. Variable overhead is applied based on machine hours. The standard rate per machine hour was $9. The standard quantity of machine hours allowed for good output was 9000. What was the actual quantity of machine hours used?

• A) 12 222
• B) 11 000
• C) 10 000
• D) 9000

---

Definitions:

Quantitative Model

A mathematical model that utilizes quantitative data to forecast or make decisions, often used in finance, operations, and strategic planning.

Mathematical Algorithm

A finite sequence of well-defined instructions typically used to solve a class of specific problems or to perform a computation.

Expert Demand Forecast

A projection or estimation of future demand for goods or services based on analyses conducted by experts in the field.

Forecasting Methods

Techniques utilized to predict future events or trends, including sales, economic conditions, and consumer behavior predictions.