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Tycoon Manufacturing Uses a Standard Costing System The Combined Fixed and Variable Overhead Spending Variance Was:
A)

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Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded:
 Units produced 4,900 Units sold 4,600 Machine hours required 20,500 Actual overhead cost $248,000\begin{array}{lr}\text { Units produced } & 4,900 \\\text { Units sold } & 4,600 \\\text { Machine hours required } & 20,500 \\\text { Actual overhead cost } & \$ 248,000\end{array}
The combined fixed and variable overhead spending variance was:


Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from producing and consuming a good or service.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Producer Surplus

The gap between the price producers are ready to take for offering a product or service and the actual payment they receive.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive.

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