Use This Information to Answer the Questions That Follow

question 169

Multiple Choice

Use this information to answer the questions that follow.
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The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
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-The fixed factory overhead volume variance is

• A) $2,000 favorable
• B) $2,000 unfavorable
• C) $2,500 unfavorable
• D) $0

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Definitions:

Production Costs

The total expenses incurred in the process of producing goods or services, including raw materials, labor, and overhead.

Professional Services

Expert services provided by qualified professionals such as lawyers, accountants, and consultants.

Service Shops

Businesses that provide professional or technical services rather than products, often requiring specialized labor or skills.

Mass Services

Services provided on a large scale to a broad population where individual customer interactions are relatively uniform and low in complexity.