General Ltd

question 40

Multiple Choice

General Ltd. budgeted fixed overhead costs of $25,000 per quarter and 1,000 units per quarter in its normal absorption costing system. Any volume variance is carried forward and closed at year-end. The company experienced the following activity: The volume variance in quarter 1 was

• A) $2,500 Unfavorable
• B) $10,000 Unfavorable
• C) $7,500 Favorable
• D) $5,000 Favorable

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Definitions:

Fixture

An item of personal property that has been attached to land or a building in such a way that it is considered legally a part of the real property.

Real Property

Land and any structures or improvements attached to the land, such as buildings, making it immovable property.

Tangible Property

Physical assets that can be touched and seen, such as buildings, machinery, and inventory.

Engagement Ring

A ring typically given as a symbol of commitment when proposing marriage.