Cabot Company Collected the Following Data Regarding Production of One

question 168

Multiple Choice

Cabot Company collected the following data regarding production of one of its products.Compute the variable overhead cost variance.

• A)$18,000 favorable.
• B)$4,000 favorable.
• C)$18,000 unfavorable.
• D)$18,300 favorable.
• E)$14,300 unfavorable.

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Definitions:

Unanticipated Events

Occurrences or outcomes that were not expected or predicted, often causing significant impact on plans or expectations.

Firm-Specific Events

Occurrences that affect only a particular company or industry, in contrast to market-wide events that impact the broader economy or financial markets.

Single-Index Model

A simplified way to estimate the return on a security based on its sensitivity to a single market index.

Security Returns

The gains or losses from investing in a financial security, usually expressed as a percentage of the investment's initial cost.