Benson's Fixed-Overhead Volume Variance Is

question 3

Multiple Choice

Benson's fixed-overhead volume variance is:

• A)$10,000 favorable.
• B)$15,000 favorable.
• C)$15,000 unfavorable.
• D)$20,000 favorable.
• E)$20,000 unfavorablE.

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Definitions:

Directing

The management process of guiding and overseeing employees to achieve the objectives of the organization.

Worker's Tools Depreciation

The reduction in value of tools over time due to use and wear, attributed to the worker's tools used during production or service delivery.

Factory Overhead

All the indirect costs associated with manufacturing, excluding direct materials and direct labor costs, such as utilities, maintenance, and equipment depreciation.

Direct Materials

Raw materials that can be directly attributed to the manufacturing of a specific product and are an essential component in its production.