The Following Information Is Available from the Taro Company

question 2

Multiple Choice

The following information is available from the Taro Company:
What is the fixed overhead spending variance for the period?

• A)$200 unfavorable.
• B)$600 favorable.
• C)$750 favorable.
• D)$950 favorable.
• E)$2,100 favorable.

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Definitions:

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.

Capital Goods

Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.