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The Total Variance Is $10,000 Favourable

question 59

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The total variance is $10,000 favourable.The total materials variance is $4,000 favourable.The total labour variance is twice the total overhead variance, both which are favourable.What is the total overhead variance?


Definitions:

Price Change

The variation in the selling price of goods and services over a period of time, influenced by factors such as supply and demand, production costs, and market competition.

Inelastic Supply

describes a situation where the quantity supplied of a good is not significantly affected by changes in price.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.

Price Rise

An increase in the general level of prices for goods or services over a period of time.

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