The Following Budget Data Pertain to the Machining Department of Yolkenverst

question 9

Multiple Choice

The following budget data pertain to the Machining Department of Yolkenverst Co.:
The company prepared the budget at 85% of the maximum capacity level.The department uses machine hours as the basis for applying standard factory overhead costs to production.During the year the Machining Department produced 50,000 units,consuming 127,500 machine hours and incurring $433,500 of fixed overhead.For the current year the department has a production-volume variance of:

• A)$0.
• B)$3,400 unfavorable.
• C)$3,600 unfavorable.
• D)$7,000 unfavorable.
• E)$8,500 unfavorable.

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Definitions:

Equilibrium Price

The price point at which the supply of goods aligns perfectly with the demand for those goods.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by price, production costs, and market demand.

Bacon Cheeseburgers

A hamburger topped with bacon and cheese, serving as a popular American fast food dish.

Price Decreases

Reductions in the cost of goods or services, often leading to increased demand.