(Appendix 10A) Tierman Incorporated Makes a Single Product--A Cooling Coil

question 78

Multiple Choice

(Appendix 10A) Tierman Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The fixed overhead budget variance is:

• A) $14,000 F
• B) $43,560 U
• C) $43,560 F
• D) $14,000 U

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Definitions:

Decrease in Price

A reduction in the cost at which goods or services are sold, leading to a potential increase in quantity demanded.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Increase in Quantity

An increase in quantity refers to a rise in the number of units produced or sold of a particular good or service.

Demand

The amount of a particular product or service that consumers are willing and able to purchase at various prices.