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

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Definitions:

Normative Economic Statement

A statement that reflects opinions or judgments about what ought to be in economics, focusing on the desirability of certain economic policies or outcomes.

Minimum Wage

The lowest legal wage that employers are allowed to pay their workers, set by law to ensure a minimum standard of living for employees.

Federal Government

The national government of a federated state, which holds the central political authority in a federal system.

Positive Statement

An objective statement based on factual information that can be tested or verified rather than based on opinions or norms.