The Following Information Is Available from Thinnews Co

question 75

Multiple Choice

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead:
Under a three-variance breakdown (decomposition) of the total factory overhead variance,the factory overhead production-volume variance is:

• A)$400 favorable.
• B)$600 unfavorable.
• C)$1,400 favorable.
• D)$1,400 unfavorable.
• E)$2,000 favorable.

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Definitions:

Euro

The official currency of nineteen of the twenty-seven European Union countries, known collectively as the Eurozone.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Operating Expenses

Costs associated with running the day-to-day operations of a business, such as rent, utilities, and payroll, but excluding costs related to production.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.