Answer the Following Questions Using the Information Below

question 50

Multiple Choice

Answer the following questions using the information below:
Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:

-An unfavorable variable overhead spending variance indicates that:

• A)variable overhead items were not used efficiently
• B)the price of variable overhead items was more than budgeted
• C)the variable overhead cost-allocation base was not used efficiently
• D)the denominator level was not accurately determined

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Definitions:

Marginal Social Cost

The comprehensive expense to society for producing an extra unit of a good or service, encompassing both individual costs and external ones.

Pollution

The introduction of contaminants into the natural environment, causing adverse change.

Efficient Rate

The optimal point at which the cost of undertaking an activity is minimized and productivity is maximized.

Emissions

The release of substances (usually gases or particulates) into the environment, often referring to pollutants released into the air by vehicles and industrial processes.