Lexie also wishes to contact people or organizations as referees for job candidates to fill strategic positions in the organizations. Discuss two to three limitations of referee reports placed on management or organizations for job candidates. How do organizations cope with this burden?

Answers

Answer 1

Two or three limitations of reports from arbitrators placed in management or organizations for job applicants could be bias toward the candidate or lack of sufficient information about the attributes the organization wants to know about the potential candidate.

Organizations address this burden by seeking greater reference from the candidate through their posture and past decisions, in addition to conducting a more structured interview process to fill the gap in an arbitrator report.

An organization that will hire employees to fill strategic positions knows that this is a more sensitive process, as these positions require greater accountability and reliability.

Therefore, it is necessary to investigate the candidate's career and carry out a more structured selection process to choose an employee with the profile most aligned with the organization.

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Related Questions

The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is expected to recommend a monetary policy for the board to pursue. She decides to use the Taylor rule, which was originally developed for the U.S. Federal Reserve. Ionia's potential GDP is 100 million drachma, but current GDP is 96 million . What is Ionia's output gap

Answers

By using the Taylor rule used the U.S. Federal Reserve, the Output gap for Ionian Central Bank will equal -4%.

Output gap helps to measure the difference between the actual output of an economy and its potential output.

The formula to use to derive Ionia's Output gap is {[Current GDP - Potential GDP} / 100}}

Ionia's Output gap = (96 - 100)/100

Ionia's Output gap = -4 / 100

Ionia's Output gap = -4%

Therefore, by using the Taylor rule used the U.S. Federal Reserve, the Output gap for Ionian Central Bank will equal -4%.

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What is the MOST LIKELY reason for increase in the pricce of a specific stock?

Answers

Answer:

The item becomes too popular and starts to run out.

If the demand for the product is increasing while the supply is not.

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 12 million of the company’s $1 par common shares for $11 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $13 per share. The fair value of the 12 million options, estimated by an appropriate option pricing model, is $3 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. & 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, 2022, and 2023. Record the exercise of the options if all of the options are exercised on May 11, 2025, when the market price is $14 per share.

Answers

1. The total compensation cost pertaining to the incentive stock option plan is $36 million.

2. & 3. The appropriate journal entries to record compensation expense on December 31, 2021, 2022, and 2023 are:

1. Total compensation expense

Total compensation expense=Total option× Fair value per option

Total compensation expense=$3×12 million

Total compensation expense= $36 million

2. SSG Cycles Journal entry

December 31, 2021

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

December 31, 2022

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

December 31, 2023

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

3. May 11, 2025

Debit Cash $132 million

($11×12 million)

Debit Additional-paid in capital -Stock options $36 million

Credit Common stock $12 million

($1×12 million)

Credit Additional-paid in capital -excess par $156 million

($132 million+$36 million-$12 million)

(To record the exercise of stock option)

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What makes a good leader

Answers

Answer:

A good leader is someone who is willing to hold up their own issues to help others. Another example of a good leader is someone who always tries to help no matter what.

The Laffer curve shows that Group of answer choices at some specific tax rate, tax revenue is maximized. tax revenue is constant overall tax rates. tax revenue decreases as tax rates increase. tax revenue is maximized at multiple tax rates. tax revenue increases as tax rates increase.

Answers

The Laffer curve shows that at some specific tax rate, tax revenue is maximized.

The Laffer Curve theory was developed by  Arthur Laffer in 1974. The curve shows the relationship between tax rates and tax revenue.  According to this theory, higher income tax rate diminishes the desire of labour to work and invest. This is because higher income increases the amount of tax to be paid. This means that at some point, increase in the tax rate would decrease government revenue rather than increase it.

The theory submits that there is an optimal tax rate at which tax income is maximised. Once this point is exceeded, increase in tax rate would reduce the revenue earned by the government.

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How much interest will the account have earned when Mary takes out all the money on her 21st birthday

Answers

I just want some points

The Three Little Pigs purchased three houses for a total cost of $160,000. Appraisal values for the three completed houses were: straw house, $40,000; wood house $60,000; and brick house $100,000. Using the basket purchase allocation, the recorded value of the brick house should be ______.

Answers

Using the basket purchase allocation, the recorded value of the brick house should be $80,000.

First step is to calculate the allocation percentage

                           Straw house Wood house Brick house Total

Fair market value $40,000          $60,000 $100,000 $200,000

Percentage                  20%                30%                 50%

($40,000/$200,000) ($60,000/$200,000) ($40,000/$200,000)

Second step is to allocate using  basket purchase allocation

Straw house=20%×$160,000

Straw house=$32,000

Wood house= 30%×$160,000

Wood house=$48,000

Brick house=50%×$160,000

Brick house=$80,000

Inconclusion  the recorded value of the brick house should be $80,000.

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Jay, a divisional vice president of a consumer goods manufacturer, gives a presentation to all divisional employees to outline the company’s goals for the coming year. This is an example of what type of organizational communication?

✔ a. Downward communication
b. Grapevine communication
c. Lateral communication
d. Upward communication
e. Virtual communication

Answers

Answer:

downward communication

In your opinion, what are the three most important microeconomic issues of our society today?

Answers

Answer:

voting rights, hand weapon violence, and the pandemic

Explanation:

the worldwide issue right now is the pandemic and that's what everybody is worried about, along with that comes healthcare.

Mr. and Mrs. Alvarez paid $130,000 for their home 30 years ago. They recently sold this home and moved into a rented apartment. Describe the tax consequences of the sale assuming that the amount realized was: $125,000 $450,000 $850,000

Answers

The tax consequences faced by Mr. and Mrs Alvarez for the sale of their home are as follows:

a. They have a realized loss of $5,000 for situation A.

b. They have a realized gain of $320,000 for situation B.

c. They have a realized gain of $720,000 for situation C.

Data and Calculations:

Cost of the home 30 years ago =$130,000

a. Realized capital loss = $5,000 ($130,000 - $125,000)

b. Realized capital gain =$320,000 ($450,000 - $130,000)

c. Realized capital gain = $720,000 ($850,000 - $130,000)

Thus, Mr. and Mrs. Alvarez can also claim the full $500,000 exemptions to reduce their capital gain tax burdens in the three situations since they inhabited the home for more than two years.  However, their exemptions are limited to the net gain.

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The company has net nonoperating obligations (NNO) of $10,000 and 5,000 shares outstanding. Calculate the per-share stock price for 2021 using the FCFF information above, a discount rate of 7%, and a terminal growth rate of 2%. Hint: a. Calculate PV FCFF for each of 2022 to 2025 and sum them up; b. Calculate PV Terminal Year; c. Calculate Total Firm value by adding up (a) and (b); d. Subtract net nonoperating obligation to get total equity value; e. Divide total equity value by shares outstanding to get the per-share stock price (Please show your calculations)

Answers

The per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Explanation:

Net non-operating obligations (NNO) = $10,000

Outstanding shares = 5,000 shares

Discount rate = 7%

Terminal Growth rate = 2%

Expected free cash flows for Target Corp. for 2019:

                                     Current   Forecast Horizon                        Terminal

                                          2019    2020    2021     2022     2023      Year

Free cash flows (FCFF) $4,650 $4,880 $5,130  $5,390 $5,650   $5,766

Discount factor at 7%                  0.935   0.873     0.816    0.763     0.713

PV of FCFF                                $4,563  $4,478  $4,398   $4,311     $4,111

a. Sum of PV of FCFF for 2020 to 2032 = $17,750 ($4,563 + $4,478 + $4,398 + $4,311)

b. The PV Terminal Year = $4,111

c. Total Firm Value = $21,861 ($17,750 + $4,111)

d. Total Equity Value = $11,861 ($21,861 - $10,000)

e. Per Share Stock Price = $2.37 ($11,861/5,000)

Thus, the per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

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Is L. Gore a mechanistic or an organic organization?

Answers

organizational structure

The type of conflict that stimulates employees to work toward greater effort, cooperation, and creativity is ______________ conflict. a. concentrated b. dysfunctional c. destructive d. functional

Answers

The functional conflict is  conflict that stimulates employees to work toward greater effort etc

Functional conflict is known as a healthy and constructive disagreement that occurs between employees, groups, individuals etc.

This kind of conflict is beneficial because its stimulates employees to work toward greater effort, cooperation etc

Therefore, the Option D is correct.

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your salary is $50,000 income tax rate is 21% on the first $35,000 and 23% on the rest of your income what is the total amount of tax that you owe A.$10,500 B. $10,770 C. $10,800 D.$11,500​

Answers

Answer:

C

Explanation:

35000 = 100%

35000×0.21 = 21% = $7350

50000 - 35000 = 15000 = 100%

15000×0.23 = 23% = $3450

so, in total, I pay

7350 + 3450 = $10,800

In the context of the common mistakes made during succession planning, the provisions of the _____ require boards to increase the priority of CEO succession.

Answers

Firms often have different ways of appointing successors. In the context of the common mistakes, the provisions of the Sarbanes-Oxley Act require boards to increase the priority of CEO succession.

The Sarbanes-Oxley Act provisions is known to input more demands that boards do in CEO succession planning.

The Sarbanes–Oxley Act of 2002 is a common United States federal law that gives power for some specific practices in financial record keeping and reporting for corporations.

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Multiple-choice help me, pls.
16) If the supply of iPads increases, then
i. the supply curve for iPads has shifted rightward.
ii. the price of iPads has decreased.
iii. there will be a movement upward along the iPad supply curve.
A) i only
B) i, ii and iii
C) i and ii
D) ii and iii
E) i and iii

30) Which of the following statements is correct?
A) Consumer surplus equals the price paid for a good.
B) The consumer surplus from a good is always larger than the total benefit from the good.
C) An increase in price decreases consumer surplus.
D) An increase in price has no effect on consumer surplus.
E) The consumer surplus from a good or service must always equal producer surplus.
Answer:
33) A firm's marginal revenue is
A) the change in total revenue that results from a one-unit increase in the quantity sold.
B) total revenue minus total cost.
C) the change in total revenue minus the change in total cost.
D) the change in total revenue that results from an increase in the demand for the good or service.
E) less than the market price for a perfectly competitive firm.
Answer:

34) Suppose a perfectly competitive firm's minimum average variable cost is $3 when it produces 50. If the price is $2 and the firm's marginal cost is $2, the firm should
A) continue to produce, but produce more than 50.
B) continue to produce 50.
C) continue to produce, but produce less than 50.
D) shut down.
E) continue to operate, but to determine the amount of production needs more information than is given.
Answer:
42) Discretionary fiscal policy is a fiscal policy action, such as
A) an interest rate cut, initiated by an act of Congress.
B) an increase in payments to the unemployed, initiated by the state of the economy.
C) a tax cut, initiated by an act of Congress.
D) a decrease in tax receipts, initiated by the state of the economy.
E) an increase in the quantity of money.
Answer:

43) The magnitude of the government expenditure multiplier is ________ the magnitude of the tax multiplier.
A) greater than
B) equal to
C) less than
D) not comparable to
E) greater than for expansionary policy and less than for contractionary policy
Answer:

44) An increase in government expenditure can ________ potential GDP and an increase in taxes can ________ potential GDP.
A) increase; increase
B) increase; never change
C) decrease; decrease
D) never change; never change
E) increase; decrease
Answer:
45) When the Fed increases the federal funds rate,
A) there is no effect on investment because investment depends on the real interest rate.
B) the real interest rate falls, and investment increases.
C) the real interest rate rises, and investment decreases.
D) the real interest rate is unaffected, but investment still decreases.
E) the real interest rate rises, and investment does not change.
Answer:

46) The Fed raises the federal funds rate. Which of the following changes occurs most rapidly?
A) Exchange rate rises.
B) Consumption expenditure decreases.
C) Aggregate demand decreases.
D) Real GDP growth decreases.
E) Inflation rate decreases.
Answer:

47) If the Fed increases the quantity of money and lowers the federal funds rate, real GDP ________ and the price level ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change
Answer:

48) Raising the federal funds rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________.
A) rightward; increases; rises
B) leftward; decreases; rises
C) rightward; increases; falls
D) leftward; decreases; falls
E) leftward; increases; rises
Answer:

Answers

16. D
30. C
33. A
34. D

Dominique and Isidora Wilson are wealthy entrepreneurs who are very interested in helping people who have been wrongly convicted of crimes. What philosophy would they choose to implement

Answers

People do things for different reasons.The philosophy they would they choose to implement is Philanthropy.

Philanthropy is a term that goes beyond the act of giving, Its aim is to encourage change in the community and people.

This act been pursued is equally beneficial for the performer and the recipient. The field of philanthropy is lead by professional companies and people to worthy causes.

Giving yourself to a cause is very personal, and sometimes emotionally taxing of your time and money.

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On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 215,000 September 1, 2021 $ 318,000 December 31, 2021 $ 318,000 March 31, 2022 $ 318,000 September 30, 2022 $ 215,000 Kendall borrowed $756,000 on a construction loan at 9% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,530,000 in 9% bonds payable outstanding in 2021 and 2022. Interest (using the specific interest method) capitalized for 2021 was:

Answers

Based on the information given using the specific interest method interest capitalized for 2021 was: $28,890.    

First step is to calculate the expenditure for the year    

Expenditure for the year

January 1, 2021              $215,000×12 /12=$215,000

September 1, 2021         $318,000×4 /12=$106,000

December 31, 2021        $318,000×0    =$0                

Total                                $851,000         $321,000

Second step is to calculate

the Interest Capitalized for 2021

2021 Interest Capitalized=$321,000×9%

2021 Interest Capitalized=$28,890

Inconclusion  using the specific interest method interest capitalized for 2021 was: $28,890.

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A business owner makes 60 items by hand in 45 hours. She could have earned $35 an hour working for someone else. Her total explicit costs are $225. If each item she makes sells for $18, her economic profit equals:

Answers

The Answer Is : $-720

$-720 is her economic profit equals. A business owner makes 60 items by hand in 45 hours. She could have earned $35 an hour working for someone else. Her total explicit costs are $225.

What is economic profit equals?

Economic profit is equal to total revenue less total costs, which include both explicit and implicit costs. Economists use the term "zero economic" to indicate that a company has no economic profit when its total costs and total revenues are equal.

When a business is competitive and generates enough income to cover its costs, it may often declare a zero economic profit. Economic profit is calculated as revenues minus explicit costs minus opportunity costs.

In this equation, leaving out the opportunity costs only results in the accounting profit; however, leaving out the opportunity costs can also be used as a stand-in for assessing other strategies.

Thus, it is $-720.

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Why was the system of checks and balances included in the Constitution?

a to keep the President of the United States from vetoing legislation
b to slow down the process of government so it doesn't move too fast
c to prevent one branch of the government from becoming too powerful

Answers

Answer:

C to prevent one branch of the government from becoming too powerful

The question is

b) why does the equilibrium quantity remain the same even after the demand and supply curves change from D1 to D2 and S1 to S2 respectively? ​

Answers

The answer would be from change D1

he balance sheet for Crutcher Corporation reported 220,000 shares outstanding, 320,000 shares authorized, and 22,000 shares in treasury stock. Compute the maximum number of new shares that Crutcher could issue.

Answers

Based on the information given the maximum number of new shares that Crutcher could issue is 78,000 shares.

First step is to calculate Issued share using this formula

Issues shares=Outstanding shares + Treasury stock shares

Let p[lug in the formula

Total authorized shares=220,000+22,000

Total authorized shares=242,000 shares

Second step is to calculate the maximum number of new shares using this formula

Maximum number of new shares =Authorized shares- Issued shares

Let plug in the formula

Maximum number of new shares=320,000-242,000

Maximum number of new shares =78,000 shares

Inconclusion the maximum number of new shares that Crutcher could issue is 78,000 shares.

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Please help! Need an expert in this and will give 50 points and brainliest if it’s answered. Getting reported if it’s answered for points

Pat Jones is a college student who is planning some networking opportunities for the current semester. Pat wanted to look professional for these events and felt a new suit would be a real benefit; however, the cost for the first event ended up being $75 which was a strain on the budget. Pat did not want to attend the
remaining three events in the same outfit, so a new strategy was developed. Instead of paying for new suits in cash, Pat decided to charge the suits on a credit card, wear them to the events, and then return them the next
day for full credit.

2. Do you feel Pat's new strategy is ethical? Why or why not? Could there be any consequences with this strategy?
3. How will this new strategy impact the company/companies where the suits are purchased?
4. What journal entry/entries would the company have to record related to the return of the suit?

Answers

Answer:

2. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

3. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

4. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

a deductible of $500 requires ( select the correct answer )

Answers

Answer:

ɴᴏ ᴘɪᴄ sᴏʀʀʏ :(( ʙʏᴇ :)))

A $500 deductible means you'll pay $500 out of pocket after an accident, and your insurer will pay for the rest of the damages up to your policy limits. This deductible amount is a common choice for drivers. If your car repairs are less than your $500 deductible, you won't be able to file a claim.

Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $400,000, 6%, 8-year installment note to the seller. Payments of $5,257 are required at the end of each month over the life of the 8-year loan. Each monthly payment of $5,257 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.
Required: 1. Complete the first three rows of an amortization schedule.
Required 2&3. Record the purchase of land with the issuance of a long-term note payable on November 1, 2022, and the first two payments on November 30, 2022, and December 31, 2022, and calculate the remaining balance of the note payable as of December 31, 2022. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) then record the balance
Required 4. The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $40574. How would the remaining balance of the note payable be reported in the balance sheet as of December 31, 2022?

Answers

1. The completion of the first three rows of a monthly amortization schedule is as follows:

Monthly Amortization Schedule  

           Beginning            Interest         Principal       Ending

            Balance             Payment      Repayment      Balance

1      $400,000.00      $2,000.00      $3,257.00      $396,743

2      $396,743.00        $1,984.00      $3,273.00      $393,470

3      $393,470.00        $1,967.00      $3,290.00      $390,180

2&3. Journal Entries:

November 1, 2022:

Debit Land $400,000

Credit Note Payable $400,000

To record the issuance of the note payable for the purchase of the land.

November 30, 2022:

Debit Interest Expense $2,000

Debit Note Payable $3,257

Credit Cash $5,257

To record the first interest payment.

December 31, 2022:

Debit Interest Expense $1,984

Debit Note Payable $3,273

Credit Cash $5,257

To record the second interest payment.

3. The remaining balance of the note payable as of December 31, 2022, is $393,470.

4. In the balance sheet as of December 31, 2022, the remaining balance of the note payable ($393,470) will be reported under Current Liabilities of $40,574 and Long-term Liabilities of $352,896.

Data and Calculations:

Note payable = $400,000

Interest rate = 6% per annum

Maturity period = 8 years

Monthly installmental payment  (interest and principal inclusive) = $5,257

Bal;ance of the Note Payable

November 1, 2022: Note Payable                $400,000

First two repayments in Nov and Dec. 2022 = 6,530 ($3,257 + $3,273)

Balance as of December 21, 2022                393,470

Repayments from Jan. 1 to Dec. 2023            40,574

Balance as of December, 2023                    352,896

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Fastest way of making balance sheet

Answers

Answer:

Reporting Date and Period. ...

Identify Assets. ...

Identify Liabilities. ...

Calculate Shareholders' Equity. ...

Add Total Liabilities to Total Shareholders' Equity and Compare to Assets.

Answer:

Determine the Reporting Date and Period.

Identify Your Assets.

Identify Your Liabilities.

Calculate Shareholders' Equity.

Add Total Liabilities to Total Shareholders' Equity and Compare to Assets.

Explanation:

Let me know if it helps!

3. Cash and credit sales, with returned merchandise. (a) Merchandise is sold for $340 cash. (b) $30 of merchandise sold for $340 is returned for refund. (c) Merchandise is sold on account for $280. (d) $25 of merchandise sold for $280 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account.

Answers

Answer:

The payment received is 1200

When using the effective-interest method of bond amortization, Interest Expense ______ each payment if the bonds were issued at a discount.

Answers

When the effective-interest method of bond amortization is used, the Interest Expense exceeds each payment if the bonds were issued at a discount.

In short, the Interest Expense is based on the bond's proceeds, which are always below the face value of the bonds when issued at a discount.

Thus, the interest expense is calculated using the effective interest rate on the bond's proceeds.

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Answer:

increases

Explanation:

GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

Answers

The difference between the price that GeonHouses charges its customers and the cost of manufacturing a bowl of soup is C. captured value.

The captured value represents the difference between the $3 selling price and the $1 cost of manufacturing a bowl of soup for customers.

This captured value is also known as the gross profit.  Based on the gross profit, GeonHouses deduct its expenses and taxes to determine the actual net income.

The $2 difference is not an abstract, modified, or differentiation value.

Data and Calculations:

Selling price per bowl of soup = $3

Manufacturing cost per bowl = $1

Captured value = $2 ($3 - $1)

Thus, the $2 difference is a captured value for GeonHouses.

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Options for this question are:

A. abstract value

B. modified value

C. captured value

D. differentiation value

he following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour $ 0.50​
Actual variable overhead $ 96,000​
Budgeted variable overhead rate per machine hour $ 4.00​
Actual fixed overhead $ 15,000​
Budgeted hours allowed for actual output achieved 41,000​
Based on this information, the total overhead variance is:
a $5500 unfavorable.
b $73,500 unfavorable.
c $73,500 favorable.
d $68,000 favorable.
e $5500 favorable.

Answers

Answer:

A) $2,000 favorable

Explanation:

Actual total variable overhead = $ 73,000

Actual total fixed overhead = $ 17,000

Budgeted variable overhead rate per machine hour = $ 2.50

Budgeted total fixed overhead = $ 15,000

Budgeted machine hours allowed for actual output = 30,000

Budgeted variable overhead = $ 2.50 x 30,000 = $ 75,000

Variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Variable overhead variance = $ 75,000 - $ 73,000 = $ 2,000

Since the actual value is under the budgeted value, the variable overhead variance is $2,000 favorable.

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