Answer the Following Questions Using the Information Below

question 145

Multiple Choice

Answer the following questions 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 fixed overhead spending variance?

• A)$1,000 unfavorable
• B)$2,000 favorable
• C)$3,000 unfavorable
• D)$5,000 favorable

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Definitions:

Demand Function

A mathematical representation showing the relationship between the quantity of a good that consumers are willing to buy and its price, along with other factors like income and prices of related goods.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Marginal Cost

The additional charge associated with manufacturing an extra unit of a product or service.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.