Somalian Corporation Uses a Standard Costing System

question 84

Multiple Choice

Somalian Corporation uses a standard costing system. Information for the month of May is as follows: Actual manufacturing overhead costs ($26,000 is fixed) $80,000 Direct labor:
Actual hours worked 12,000 hrs.
Standard hours allowed for actual production 10,000 hrs.
Average actual labor cost per hour $18
The factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows:
Variable factory overhead $48,000
Fixed factory overhead 24,000
Total factory overhead $72,000
What is the fixed overhead spending variance for Somalian?

• A) $4,000 (U)
• B) $8,000 (U)
• C) $2,000 (U)
• D) $20,000 (U)

Understand the concepts of exposure and control groups in observational studies.

Understand the fundamental principles of negotiation.

Identify strategies and tactics used in negotiation.

Recognize the importance of managing tangibles (e.g., price, terms) and intangibles (e.g., perceptions, relationships) in negotiation.

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Definitions:

Function

The natural action or intended purpose of something or someone.

Structure

The arrangement of and relations between the parts or elements of something complex.

People

Refers to individuals or groups considered in the context of social, professional, or demographic characteristics.

Embryonic Shoots

The developing shoots of a plant embryo, which will give rise to the stem and leaves.