Avon CoHas a Fixed Overhead Spending Variance of $2,800 Favorable

question 10

Multiple Choice

Avon Co.has a fixed overhead spending variance of $2,800 favorable.During February,2,500 units were budgeted to be produced,2,400 units were actually produced,and $75,000 was budgeted for fixed overhead.How much was actually spent on fixed overhead?

• A)$72,000
• B)$72,200
• C)$75,000
• D)$77,800

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Definitions:

Personal Property

Assets that are movable and not permanently attached to one location, such as furniture or vehicles.

Real Property

Land and anything permanently affixed to it, such as buildings, fences, and those things attached to the buildings.

Consideration

Consideration in law refers to something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Gift

A voluntary transfer of property made without consideration, past or present.