Tucker CoHas Budgeted Fixed Overhead of $225,000 Based on Budgeted Production

question 45

Multiple Choice

Tucker Co.has budgeted fixed overhead of $225,000 based on budgeted production of 7,500 units.During February,7,200 units were produced and $233,400 was spent on fixed overhead.What is the fixed overhead spending variance?

• A)$8,400 unfavorable
• B)$9,000 unfavorable
• C)$17,400 unfavorable
• D)$600 favorable

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Definitions:

Cash Account

An account that records cash transactions, including cash received and disbursed, maintained by a company to keep track of its liquid assets.

Recorded

This term signifies the process of documenting transactions and events in the accounting records of a business.

Major Account Groups

Categories used in accounting to organize and summarize financial transactions, including assets, liabilities, equity, revenue, and expenses.

Basic Chart

A visual representation of data designed to display simple information clearly and concisely, often used in reporting and analysis.