Use the Following Information for the Next 6 Questions

question 26

Multiple Choice

Use the following information for the next 6 questions.
Hyteck, Inc. is a capital intensive firm. Indirect costs make up nearly 70% of the product costs. The company has no direct material costs because customers provide the direct materials used for each job. To plan and control such costs, the firm employs flexible budgets and standard costs. Overhead rates, based on direct labor hours, are derived from the master budget.
-The fixed overhead production volume variance was

• A) $9,000 U
• B) $2,000 F
• C) $7,000 U
• D) $2,800 U

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Definitions:

Ownership Interest

A legal or equitable right or stake in an entity, often represented by shares or units, giving the holder a claim on part of the entity's assets and earnings.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Post-Acquisition Equity

The change in the investor’s share of the net assets of an investee after the acquisition date.