Goodard Inc

question 47

Multiple Choice

Goodard Inc. planned to use $156 of material per unit but actually used $141 of material per unit, and planned to make 1,150 units but actually made 920 units.
The flexible-budget variance for materials is ________.

• A) $13,800 favorable
• B) $13,800 unfavorable
• C) $17,250 unfavorable
• D) $17,250 favorable

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Definitions:

Budget Line

A graphical depiction in economics that shows all possible combinations of two goods that can be purchased with a fixed amount of income.

Tax Rate

The percentage at which an individual or corporation is taxed.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Utility Function

A mathematical representation that ranks individual preferences for various goods or services, depicting how choices provide levels of satisfaction or utility.