Lazy Guy Corporation Manufactured 4,000 Chairs During June

question 132

Multiple Choice

Lazy Guy Corporation manufactured 4,000 chairs during June. The following variable overhead data relates to June:

What is the variable overhead flexible-budget variance?

• A) $2,200 favorable
• B) $1,480 favorable
• C) $2,200 unfavorable
• D) $1,480 unfavorable

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Definitions:

Relative Frequency

The ratio of the number of times an event occurs to the total number of trials or observations.

Subjective

Rooted in or swayed by one's own emotions, preferences, or views.

Equity Loan

A type of loan in which the borrower uses the equity of their property as collateral.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.