Hamilton Pty Ltd Uses a Standard Costing System for Product

question 88

Multiple Choice

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the amount of fixed overhead budget variance.

• A) $10 000 favourable
• B) $10 000 unfavourable
• C) $24 000 favourable
• D) $34 000 unfavourable

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Definitions:

Accountant

An accountant is a professional who performs financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Audits

Examination and evaluation of an organization's or individual's financial records to ensure accuracy and compliance with laws and regulations.

Designated Beneficiary

An individual or entity chosen to receive benefits or assets upon the death of the policyholder or account holder.

Right to Change

The authority to alter or modify something, often found in contractual agreements or policies.