The Fixed Overhead Application Rate Is a Function of a Predetermined

question 111

Multiple Choice

The fixed overhead application rate is a function of a predetermined activity level.If standard hours allowed for good output equal the predetermined activity level for a given period,the volume variance will be

• A)zero.
• B)favorable.
• C)unfavorable.
• D)either favorable or unfavorable,depending on the budgeted overheaD.

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Definitions:

Price Supports

Government interventions to maintain the market price of a commodity or product above its competitive equilibrium level by buying up surplus supply or subsidizing the production costs.

Agriculture

Agriculture pertains to the science, art, and practice of cultivating plants and livestock, providing the basis for food production and raw materials for various industries.

Agricultural Act of 2018

Also known as the 2018 Farm Bill, it is federal legislation that funds and governs various agricultural and food programs, including crop insurance, nutrition assistance, and rural development.

Crop Insurance

A policy that protects agricultural producers against crop loss or damage caused by weather, pests, or disease.