Security Doors Has a Standard Variable Overhead Rate of $4

question 18

Multiple Choice

Security Doors has a standard variable overhead rate of $4 per direct labour hour. The standard quantity of direct labour per unit of production is 3 hours. The company's static budget was based on 50 000 units. Actual results for the year are as follows.
What was Security Door's variable overhead spending variance?

• A) $45 000 favourable
• B) $60 000 favourable
• C) $15 000 unfavourable
• D) $45 000 unfavourable

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Definitions:

Organizational Forces

Various pressures or influences within an organization that shape its culture, behaviors, and decision-making processes.

Right Thing

Acting in accordance with moral principles, ethical standards, or laws, especially when faced with a difficult decision or situation.

Financial Gain

The increase in monetary resources resulting from investing activities or other forms of economic enterprise.

Significant Others

Individuals who hold important places in one’s life and have significant influence, such as family members, close friends, or romantic partners.