Answer the Following Questions Using the Information Below:
Sport-In Corporation

question 137

Multiple Choice

Answer the following questions using the information below:
Sport-in Corporation manufactured 10,000 golf bags during April. The following fixed overhead data pertain to March:
$\begin{array}{lrr}&\text { Actual }&\text { Static Budget }\\\text { Production } & 20,000 \text { units } & 20,500 \text { units } \\\text { Machine-hours } & 5,100 \text { hours } & 6,150 \text { hours } \\\text { Fixed overhead cost for March } & \$ 250,000 & \$ 258,300\end{array}$
-What is the amount of fixed overhead spending variance?

• A) $8,300 unfavorable
• B) $2,000 favorable
• C) $2,000 unfavorable
• D) $8,300 favorable

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Definitions:

In The Money

A term referring to an option contract that has intrinsic value. For call options, this means the underlying asset price is above the strike price, and for put options, it means the underlying asset price is below the strike price.

Call

A stock market option that gives the holder the right to buy shares at a specified price within a specific time period.

Put

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Conversion Value

The financial value of converting a convertible security, like a convertible bond, into its underlying equity at the current market price.