Hamilton Pty Ltd Uses a Standard Costing System for Product

question 27

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 fixed overhead volume variance.

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

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Definitions:

Proactive Interference

The phenomenon where older memories make it more difficult to remember new information.

Dissociation

A mental process of disconnecting from one’s thoughts, feelings, memories, or sense of identity.

Repression

A defense mechanism in psychoanalytic theory where unwanted or uncomfortable thoughts and memories are pushed into the unconscious mind.

Retroactive Interference

A memory phenomenon where newer information interferes with the recall of previously learned information.