Answer the Following Question(s)using the Information Below

question 12

Multiple Choice

Answer the following question(s) using the information below.Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:

-What is the variable overhead efficiency variance?

• A)$8,600 favourable
• B)$8,600 unfavourable
• C)$141,900 favourable
• D)$141,900 unfavourable
• E)$11,000 unfavourable

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Definitions:

Marginal Revenue

The supplementary income resulting from the sale of one more good or service unit.

Price-Searcher Firm

A company that operates in a market with differentiated products and has some control over the price of its product because it faces a downward-sloping demand curve.

Profit Maximization

is the process or strategy by which a firm adjusts its production and sale levels to achieve the highest possible profit.

Price Takers

Firms or individuals who accept the market price as given and have no influence to change it.