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

question 2

Multiple Choice

Use the information below to answer the following question(s) .Moeller Electric manufactures light fixtures.The following information pertains to the company's manufacturing overhead data.
-Cady Machine Shop used 15,000 machine hours during January.It takes 0.90 machine-hours to produce one unit; 15,000 units were produced during the month.Budgeted production included 12,000 units, using 10,800 machine hours.Budgeted variable manufacturing overhead costs per machine-hour is $22.50.What is the variable overhead efficiency variance for Cady?

• A)$67,500 unfavourable
• B)$67,500 favourable
• C)$37,000 favourable
• D)$33,750 favourable
• E)$33,750 unfavourable

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Definitions:

Loss

An economic condition where expenses exceed revenues, resulting in negative profit.

Price Discrimination

Price discrimination is the strategy of selling the same product at different prices to different groups of consumers, often based on their willingness to pay, location, or purchase volume.

Disguised Subsidy

Financial support given to industries or businesses in indirect ways, not easily identifiable as traditional subsidies, to lower their costs or increase their competitiveness.

Consumer Surplus

The gap between the total sum consumers are prepared and financially able to spend on a good or service and the sum they actually spend.