40. The Battaglia Co. produces lounge chairs. At a budgeted amount of 10,000 lounge chairs the manufacturing overhead is $50,000 variable and $135,000 fixed. If Battaglia had actual variable manufacturing overhead of $60,500 and actual fixed manufacturing overhead of $125,000 for 11,000 lounge chairs produced, what would the spending (flexible budget) variance be for the total manufacturing overhead? A. $500 unfavorable B. $4,500 unfavorable C. $4,500 favorable D. $500 favorable

C. $4,500 favorable

Explanation:

Spending Variance is the difference between the actual and estimated value of the expense. In this question we need to calculate the variance of total manufacturing overhead.

Variable

Actual Variable cost = $60,500

Manufacturing overhead application rate = Budgeted overhead / Budgeted units = $50,000 / 10,000 units = $5 per unit

Applied Overhead = Actual production x application rate = 11,000 units x $5 = $55,000

Variance = $60,500 - $55,000 = $5,500 unfavorable

Fixed

Actual fixed overhead = $125,000

Budgeted Fixed overhead = $135,000

Variance = $135,000 - $125,000 = $10,000 Favorable

Total Variance = Variance of variable manufacturing overhead cost + Variance of fixed manufacturing overhead cost

Total Variance = $10,000 Favorable - $5,500 unfavorable

Total Variance = $4,500 Favorable

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

answer; descriptive statistics;