Hamilton Pty Ltd Uses a Standard Costing System for Product

question 36

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:

Blood Flow

The movement of blood through the circulatory system of the body, delivering oxygen and nutrients to cells and removing waste products.

Heartburn

A burning sensation in the chest, often spreading to the throat, associated with gastroesophageal reflux disease (GERD).

Chest Pain

A symptom that can be due to a number of health issues, ranging from indigestion to heart attack.

Bends Over

The action of leaning forward or curving the spine, typically to reach or pick something up.