The Following Standards for Variable Manufacturing Overhead Have Been Established

question 62

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:
What is the variable overhead efficiency variance for the month?

• A) $20,542 Unfavorable
• B) $19,952 Unfavorable
• C) $590 Unfavorable
• D) $9,048 Favorable

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Definitions:

Equilibrium Price

The price at which the quantity of a product demanded equals the quantity supplied.

Sellers

Entities or individuals who provide products or services for purchase in the market.

Market Equilibrium

A state where supply equals demand, resulting in stable prices and quantities in the marketplace.

Wealth-Creating Transactions

Transactions that increase the wealth of the participating parties, usually through the production, exchange, or transfer of goods and services.