Litchfield Industries Gathered the Following Information for the Month Ended

question 65

Multiple Choice

Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units:
Overhead flexible budget:
Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)

• A)$42,250 unfavorable
• B)$42,250 favorable
• C)$36,400 unfavorable
• D)$36,400 favorable

Understand the relationship between the zeros of polynomial functions and their factored forms.

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Understand the concept of break-even points in the context of business mathematics.

Apply mathematical methods to find dimensions of geometric shapes based on given conditions.

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Definitions:

Accumulated Depreciation

Full amount of depreciation expenses that have been attributed to a fixed asset since it was deployed.

Financial Statements

Reports that summarize the financial performance and health of a business including balance sheet, income statement, and cash flow statement.

Balance Sheet

A summary record that outlines a firm's assets, liabilities, and equity held by shareholders at a specific timeframe, showing its financial status.

Statement of Owner's Equity

A financial statement that outlines the changes in the equity of a company over a specific period, including contributions, withdrawals, and the net income or loss.