Core Technology Company's Operational Management Team Is Assessing a Production-Volume

question 15

Multiple Choice

Core Technology Company's operational management team is assessing a production-volume variance.A budgeted fixed overhead cost had been calculated to be $390,000.Using past data,one unit of output is computed to take 2.0 machine hours and 1.0 machine hour is calculated to cost $20.The actual output units needed for the actual output are 10,000 units.
Required
Compute the production-volume variance for this period and indicate whether the value indicates a favorable,F,or an unfavorable,U,variance.

• A)$1,000;U
• B)$10,000;F
• C)$1,000;U.
• D)$10,000;U
• E)$3,900;U.

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Definitions:

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders, typically in the form of cash, stocks, or other assets.

Accrued Interest

Interest that has been earned but not yet received in cash or recorded, representing a liability for the payer and an asset for the receiver.

Semiannual Interest

Interest calculated and disbursed semi-annually.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.