Use the Following Information to Answer the Following Questions

question 26

Multiple Choice

Use the following information to answer the following Questions
Forward Venture Company, which uses a standard cost system, budgeted $600,000 of fixed overhead when 40,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,000
Standard production time per unit: 3.9 machine hours
Fixed overhead incurred: $620,000
Actual machine hours worked: 42,000

-Forward Venture Company's fixed-overhead budget variance is:

• A) $10,000 favorable.
• B) $15,000 favorable.
• C) $15,000 unfavorable.
• D) $20,000 favorable.
• E) $20,000 unfavorable.

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Definitions:

Unearned Rent Revenue

Income received by a company for rent that has been paid in advance by tenants but not yet earned, considered a liability until the rental period occurs.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of assets, provision of services, or other forms of economic benefit.

Revenue

The cumulative revenue produced from the sale of goods or provision of services directly linked to the main business activities of a company.

Unearned Rent Revenue

Income received by a property owner for rent that has not yet been earned because the time period the rent covers has not yet passed.