Warner CoHas Budgeted Fixed Overhead of $150,000

question 14

Multiple Choice

Warner Co.has budgeted fixed overhead of $150,000.Practical capacity is 6,000 units,and budgeted production is 5,000 units.During February,4,800 units were produced and $155,600 was spent on fixed overhead.What is the unexpected (unplanned) capacity variance?

• A)$5,000 unfavorable
• B)$5,600 unfavorable
• C)$25,000 unfavorable
• D)$30,000 unfavorable

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Definitions:

Rights of Dissociated Partner

Legal entitlements that a partner retains after leaving a partnership, which may include a share of the profits or assets.

Buy His Interest

To purchase someone's stake, shares, or assets in a company or property, effectively transferring ownership or control to the buyer.

Liability to Third Parties

A legal obligation to compensate individuals not directly involved in a contract or agreement for any injuries or damages caused.

Right to Dissociate

The legal ability of a partner to leave a partnership under laws governing business partnerships, potentially triggering buyout provisions or dissolution of the partnership.