What Is the Variable Manufacturing Overhead Static-Budget Variance Given the Following

question 128

Multiple Choice

What is the variable manufacturing overhead static-budget variance given the following information?

• A)$20,000 favourable
• B)$20,000 unfavourable
• C)$50,000 unfavourable
• D)$50,000 favourable
• E)$55,000 favourable

---

Definitions:

Income Statement

A financial document that reports a company's revenues, expenses, and profits over a specific period.

Statement Of Cash Flows

Reports the impact of a firm’s operating, investing, and financing activities on cash flows over an accounting period.

Net Before-Tax Operating Income

Earnings generated from a company's core business operations before taxes and non-operating costs are deducted.

Net Fixed Assets

The total value of a company’s property, plant, and equipment minus depreciation, representing the tangible assets used in operations.