Casper Concrete Manufactures Custom Concrete Countertops for Restaurants and Individual

question 119

Multiple Choice

Casper Concrete manufactures custom concrete countertops for restaurants and individual homeowners.Casper's actual fixed overhead for the year was $86,600.During the year Casper produced 8,500 square feet of countertop and used 4,420 direct labor hours.Casper had budgeted to produce 9,000 square feet of countertop and had budgeted to use 4,500 direct labor hours.Casper's fixed overhead spending variance was $1,200 unfavorable for the year.What was Casper's budgeted fixed overhead for the year (if necessary, round your answer to the nearest dollar) ?

• A)$87,800
• B)$85,400
• C)$88,167
• D)$86,967

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and offers limited liability protection to them.

Partnership

A business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Cash Inflows

The total amount of money received by a company from its various business activities, including sales, financing, and investments, during a specific period.