Hamilton Pty Ltd Uses a Standard Costing System for Product

question 30

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 variable overhead spending variance.

• A) $25 000 favourable
• B) $15 000 unfavourable
• C) $25 000 unfavourable
• D) $15 000 favourable

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Definitions:

Manufacturing Sector

The branch of industry involved in the production of goods using raw materials and machinery.

Economy

A system that involves the production, distribution, and consumption of goods and services within a particular geographic region.

Nonprofit Organizations

Organizations that operate for the benefit of the public or a specific group of individuals, rather than for profit.

Informal Organization

An unofficial and interpersonal network of relationships and social interactions within a workplace that significantly influences attitudes, performances, and the organizational culture.