The Following Data for the See Through Company Pertain to the Produc?tion

question 28

Multiple Choice

The following data for the See Through Company pertain to the produc?tion of 1,000 bottles during June: Standard variable-overhead cost: $26.00 per pound of glass.
Total actual variable-overhead cost: $24,800.
Standard variable-overhead cost allowed for units produced was $26,000.
Variable-overhead efficiency variance was $740 unfavorable.
_____ is the variable-overhead rate variance.

• A)$1,260 unfavorable
• B)$1,200 favorable
• C)$1,200 unfavorable
• D)$1,940 favorable

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Definitions:

Pollution

The contamination of the environment with harmful or poisonous substances, adversely affecting the health of living organisms and ecosystems.

External Costs

Costs of an economic activity that are not borne by the participants but rather by other people or society at large.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.