Use the Table Below to Answer the Following Questions

question 60

Multiple Choice

Use the table below to answer the following questions.
Table 12.2.3

-Refer to Table 12.2.3, which gives the total cost schedule for Brenda's Balloon Shop, a perfectly competitive firm. Brenda's total fixed cost is

• A)$3 an hour.
• B)$4 an hour.
• C)$7 an hour.
• D)$29 an hour.
• E)zero.

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Definitions:

Fixed Factory Overhead

The consistent, non-variable costs associated with operating a factory, such as rent, utilities, and salaried personnel.

Volume Variance

The difference between the expected amount of output and the actual output, often indicating efficiency in production.

Total Factory Overhead Cost Variance

The difference between the actual factory overhead costs incurred and the overhead costs that were expected or budgeted for a period.

Fixed Factory Overhead

The constant, recurring costs associated with operating a manufacturing facility, excluding variable costs such as direct labor and materials.