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

question 7

Multiple Choice

Avon Co.has a favorable fixed overhead spending variance of $2,800.During February,Avon budgeted to produce 2,500 units,it actually produced 2,400 units,and it budgeted $75,000 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 Cash

Refers to the liquid assets that an individual holds for the purpose of immediate or near-term spending or investment.

Accounts Receivable

Receivables from customers against goods or services supplied by a business, pending payment.

Capital Statement

A financial statement that illustrates changes in a company's equity over a certain period, including investments, withdrawals, and net income or loss.

Net Income

The total earnings of a company after deducting all expenses and taxes, indicating the company's profitability over a specific period.