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:

Public Issue

The offering and sale of securities to the general public for the first time, typically through a stock exchange.

New Issue

Pertains to a financial security that has been recently issued to the public market for the first time, such as stocks or bonds.

Dutch Auction Underwriting

The type of underwriting in which the offer price is set based on competitive bidding by investors. Also known as a uniform price auction.

Competitive Bidding

A procurement process where suppliers submit bids to win a contract, ensuring transparency and fairness while possibly lowering costs.