Answer the Following Questions Using the Information Below

question 10

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:

-When machine-hours are used as an overhead cost-allocation base and the unexpected purchase of a new machine results in fewer expenditures for machine maintenance, the most likely result would be to report a(n) :

• A)favorable variable overhead spending variance
• B)unfavorable variable overhead efficiency variance
• C)favorable fixed overhead flexible-budget variance
• D)unfavorable production-volume variance

---

Definitions:

Organic Substances

Compounds that contain carbon and are found in living organisms.

Essential

Necessary; when referring to blood pressure, indicates an elevation without apparent cause.

Hypokalemia

A medical condition characterized by low levels of potassium in the blood.

Potassium Deficiency

A state in which the body has lower than necessary levels of potassium, impacting various bodily functions, particularly muscle and nerve function.