Use the Information Below to Answer the Following Question(s)

question 8

Multiple Choice

Use the information below to answer the following question(s) .Regal Company uses a single cost pool for fixed manufacturing overhead.The amount for June 2019 was budgeted at $500,000; however, the actual amount was $700,000.Actual production for June was 12,500 units, and actual machine hours were 10,000.Budgeted production included 17,750 units and 12,375 machine hours.
-Leek Company predicted that the fixed overhead would be $200,000 in April 2018.Production amounted to 60,000 actual and 50,000 budgeted decks of cards.Each deck takes approximately 0.20 machine hours to produce.The actual overhead costs per machine hour are $25.What is the production-volume variance?

• A)$40,000 unfavourable
• B)$40,000 favourable
• C)$150,000 unfavourable
• D)$150,000 favourable
• E)$0

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Definitions:

Marquis de Lafayette

A French aristocrat and military officer who played a significant role in the American Revolution by aiding the Thirteen Colonies in their quest for independence from Britain.

American Independence

The historical event achieved in 1776 when the Thirteen Colonies successfully declared their independence from British rule, marked formally by the Declaration of Independence.

Land of Slavery

A term often used to describe regions or countries where slavery was legally practiced and integral to the economy and society.

Second Great Awakening

A Protestant religious revival in the United States during the early 19th century, marked by a focus on personal piety, morality, and social reforms.