Gregorich Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead$294,490 Budgeted production (a) 35,000unitsStandard hours per unit (b) 1.40machine-hoursBudgeted hours (a) × (b) 49,000machine-hours Actual production (a) 30,000unitsStandard hours per unit (b) 1.40machine-hoursStandard hours allowed for the actual production (a) × (b) 42,000machine-hours Actual fixed manufacturing overhead$314,490 Actual hours 40,600machine-hoursThe fixed overhead budget variance is:
A. $62,070 U
B. $20,000 F
C. $62,070 F
D. $20,000 U
Answer: D
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When a company's district managers submitted their preliminary budget proposals, top management discovered that the southern district manager had requested a new project management information system. Unfortunately, the system is incompatible with the system used at headquarters. Which of the following advantages of budgeting reduces the likelihood that the company will end up with two incompatible systems?
A. Performance measurement B. Coordination C. Planning D. Corrective measures
Suggestion involvement empowers employees to make recommendations through formalized channels
Indicate whether the statement is true or false
A commercial for Carnival Cruises shows a group of friends scuba diving, rock climbing, dancing and having a really great time. Which strategy for tangibilization is Carnival using in this commercial?
A. Illumination B. Allusion C. Visualization D. Documentation E. Physical representation
As stated by the California high court in Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, manufacturers should bear the costs of injuries their products cause and thus:
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