Bolt Industries Gathered the Following Information for the Month Ended

question 124

Multiple Choice

Bolt Industries gathered the following information for the month ended March 31: The static budget volume is 4,500 units:
Overhead flexible budget:
$\begin{array} { | l | r | r | r | } \hline \text { Number of units } & 8,000 & 9,000 & 10,000 \\\hline \text { Standard machine hours } & 12,000 & 13,500 & 15,000 \\\hline \text { Budgeted overhead costs: } & & & \\& & & \\\hline \text { Variable } & \$ 48,000 & \$ 54,000 & \$ 60,000 \\\hline \text { Fixed } & \$ 33,750 & \$ 33,750 & \$ 33,750 \\\hline\end{array}$ Actual production was 10,000 units.Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs.Actual machine hours worked were 14,100 hours.
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What is the production volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)

• A)$41,250 unfavorable
• B)$41,250 favorable
• C)$33,000 unfavorable
• D)$33,000 favorable

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Definitions:

Compounded Quarterly

An interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, so that each subsequent interest calculation is made on the principal plus previously added interest.

Compounded Quarterly

The process where interest is calculated and added to the principal balance every quarter, allowing the interest to earn interest in subsequent periods.

Compounded Monthly

A method where interest is calculated and added to the principal balance every month, leading to interest on interest in subsequent months.

Factorial ANOVA

An extension of ANOVA that evaluates the effect of two or more independent variables on a dependent variable, including their interaction effects.