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:

Learning

A process that involves acquiring knowledge, behaviors, skills, values, or preferences through study, experience, or teaching.

Generalization

In psychology, generalization is the process by which an organism responds in the same way to different but similar stimuli.

Discrimination

Involves unjust or prejudicial treatment towards individuals or groups based on characteristics such as race, age, or sex.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent when there is an incentive to demonstrate it.