Actual Overhead Is $700,000, While Budgeted Overhead Is $598,000

question 84

Multiple Choice

Actual overhead is $700,000, while budgeted overhead is $598,000.What is the fixed overhead static-budget variance if 250,000 units are produced and 225,000 are budgeted?

• A)$80,000 favourable
• B)$100,000 unfavourable
• C)$100,000 favourable
• D)$102,000 unfavourable
• E)$102,000 favourable

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Definitions:

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; common examples include oil, grain, and metals.

Functional Managers

Managers responsible for specific departments within an organization, such as marketing or finance, overseeing specialized functions.

Process Managers

Individuals or tools responsible for overseeing, optimizing, and controlling the various processes within a project or organization to ensure efficiency and effectiveness.

Engineering Manager

A professional role that combines technical expertise with management skills to oversee engineering projects and teams.