If Actual Fixed Manufacturing Overhead Was $55,000 and There Was

question 79

Multiple Choice

If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been

• A)$57,400.
• B)$53,600.
• C)$54,000.
• D)$51,700.

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Definitions:

Minimum

The lowest possible amount, quantity, or degree achievable or permissible.

Gross Working Capital

The total of all current assets in a company, which includes items such as cash, inventory, and accounts receivable.

Current Assets

Assets expected to become cash in less than one year. Current assets are largely cash, receivables, and inventories.

Current Liabilities

Financial obligations a company is due to pay within one year or within its operating cycle if longer than a year.