-In a Combined 3-Variance Analysis,the Total Spending Variance Would Be

question 133

Multiple Choice

$$\begin{array}{l}\begin{array} { l c c c } &&\text { Prod uction- }\\\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \\\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \\\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }\end{array}\end{array}$$
-In a combined 3-variance analysis,the total spending variance would be ________.

• A) $20,500 F
• B) $22,500 U
• C) $20,500 U
• D) $37,500 F

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Definitions:

Output

is the total amount of goods and services produced by an economy, firm, or production process.

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.

Long Run

A period in which all factors of production and costs can be fully adjusted, including entry and exit of firms.

Economic Profits

Profits that exceed the opportunity costs of all inputs, indicating a return beyond the norm expected in competitive markets.