The Following Information Is Available for Baxter Manufacturing for April

question 102

Multiple Choice

The following information is available for Baxter Manufacturing for April:
$\begin{array}{lrr} \text { Actual machine hours } &840\\ \text { Standard machine hours allowed} &900\\ \text { Denominator activity (machine hours) } &1,000\\ \text {Actual fixed overhead costs } &\$3,800\\ \text { Budgeted fixed overhead costs } &\$4,000\\ \text { Predetermined overhead rate ( \( \$ 1 \) variable \( +\$ 4 \) fixed) } &\$\quad5\\\end{array}$

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Is the production volume variance for April favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

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Probability

A measure of the likelihood that a certain event will occur, often expressed as a number between 0 and 1, where 0 means impossibility and 1 signifies certainty.

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