Use the Information Below to Answer the Following Question(s)

question 131

Multiple Choice

Use the information below to answer the following question(s) .
Michelle Inc. uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.
A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.
B. Budgeted amounts for April 2012 are:
C. Actual amounts for April 2012 are:

-What is the variable production-volume variance?

• A) $13,500 unfavourable
• B) $6,000 unfavourable
• C) $6,000 favourable
• D) $0
• E) There is never a variable production-volume variance.

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Definitions:

Keynes

John Maynard Keynes was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, especially his advocacy for active government intervention to stabilize economies.

The Classicals

A group of economists in the 18th and 19th centuries, including Adam Smith and David Ricardo, who developed theories about how economies function.

Price Level

The overall level of prices for goods and services in an economy at a specific point in time.

Aggregate Supply Curve

Curve showing the level of real GDP produced at different price levels during a time period, ceteris paribus.