Answer the Following Question(s)using the Information Below

question 143

Multiple Choice

Answer the following question(s) using the information below.Jenny's Corporation manufactured 25,000 grooming kits for horses during March.The fixed-overhead cost allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to March:

-What is the production-volume variance?

• A)$2,000 unfavourable
• B)$3,000 favourable
• C)$4,000 unfavourable
• D)$5,000 favourable
• E)$10,000 favourable

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Definitions:

Current Year

Refers to the present calendar year or fiscal year in which business operations and accounting transactions are being considered.

Direct Materials Budget

An estimation of the type and amount of materials required to meet production goals, along with the projected cost.

Quantity

The amount or number of a material or product, which can be measured or counted.

Cost Data

Information related to the expenses incurred in the production of goods or services, including material, labor, and overhead costs.