White Company Budgeted Fixed Overhead Costs of $200,000 and Volume

question 113

Multiple Choice

White Company budgeted fixed overhead costs of $200,000 and volume of 40,000 units. During the year, the company produced and sold 39,000 units and spent $210,000 on fixed overhead.The spending variance relating to the fixed overhead cost is:

• A) $10,000 favorable.
• B) $10,000 unfavorable.
• C) $5,000 favorable.
• D) $5,000 unfavorable.

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Definitions:

Deliberate System

Refers to the cognitive process that is slow, rational, and involves conscious decision-making, contrasting with automatic, quick responses of the brain's intuitive system.

Deliberate Mind

Thinking that is conscious, intentional, and reasoned, as opposed to automatic and instinctive.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Gratification

Gratification is the pleasure or satisfaction obtained from achieving something desired or fulfilling a need.