Use the Following Information for the Next 6 Questions

question 24

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 budget variance for variable overhead was

• A) $2,800 U
• B) $7,000 U
• C) $4,400 U
• D) $9,000 U

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Definitions:

Equilibrium

In economics and finance, a state where supply equals demand, and market forces are in balance, resulting in stable prices.

WEBS Portfolios

WEBS Portfolios, originally known as World Equity Benchmark Shares, are exchange-traded funds that track international stock market indexes.

Passively Managed

An investment strategy that involves mimicking the performance of a market index, typically resulting in lower fees and turnover rates compared to active management.

Brokerage Commissions

Brokerage commissions are fees charged by a broker for executing transactions or providing specialized services.