-Refer to the Table Above

question 138

Multiple Choice

-Refer to the table above.Because of the monopoly structure in this market,__________ units are produced and the price is __________ when compared to perfect competition.

• A) 3 fewer;$1 higher
• B) 2 fewer;$2 higher
• C) 3 fewer;$2 higher
• D) 3 more;$2 higher
• E) 3 more;$1 higher

---

Definitions:

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.

Volume Variance

A measure of the difference between the budgeted and actual volume of production, impacting costs.

Overhead Variances

The difference between actual overhead costs and the budgeted or standard overhead costs.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the costs are actually incurred.