Use the Following Information to Answer the Following Questions

question 40

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 volume 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:

Close-Substitute

A good or service that can easily replace another in satisfying consumer needs, with very little change in consumption patterns.

Consumer Preferences

The tastes, preferences, and priorities that individuals have regarding the consumption of goods and services.

Close-Substitute

A product or service that can easily replace another in the consumption preferences of consumers due to its similarity.

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.