Bonehead Co The Fixed Overhead Production Volume Variance for Bonehead Co

question 51

Multiple Choice

Bonehead Co. has the following factory overhead costs for the most recent period: $\begin{array}{lr}\text { Standard overhead cost applied to this period's production } & \$ 72,000 \\\text { Flexible budget for overhead based on output (i.e., units produced) } & 65,000 \\\text { Total budgeted overhead in the master (static) budget } & 86,000 \\\text { Actual total overhead cost incurred during the period } & 76,000\end{array}$ The fixed overhead production volume variance for Bonehead Co. this period, to the nearest whole dollar, is:

• A) $4,000 unfavorable.
• B) $7,000 favorable.
• C) $10,000 favorable.
• D) $11,000 unfavorable.
• E) $14,000 unfavorable.

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Definitions:

Western Commercial Economy

The western commercial economy characterizes the economic practices and developments in the western world, focusing on trade, services, and market-driven growth.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, encompassing everything from stocks and bonds to real estate.

Indian Uprisings

Revolts or rebellions by the indigenous peoples of America against colonial or national governments, often in response to oppression or dispossession.

Lucrative Return

Refers to a significant profit or financial gain from an investment or venture, often exceeding the original amount invested.