Answer the Following Questions Using the Information Below:
Zitrik Corporation

question 89

Multiple Choice

Answer the following questions using the information below:
Zitrik Corporation manufactured 100,000 buckets during February. The variable overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:
$\begin{array}{lrr}&\text { Actual } &\text { Budgeted }\\\text { Production } & 90,000 \text { units } & 90,000 \text { units } \\\text { Machine-hours } & 9,800 \text { hours } & 9,000 \text { hours } \\\text { Variable overhead cost per machine-hour } & \$ 5.15 & \$ 5.05\end{array}$
-What is the variable overhead efficiency variance?

• A) $4,040 unfavorable
• B) $4,120 favorable
• C) $4,040 favorable
• D) $4,120 unfavorable.

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Definitions:

Price Elasticity

An assessment that depicts how variations in the price of a good affect the quantity of it that consumers want.

Oranges

Citrus fruits cherished for their juiciness, vibrant color, and sweet-tart flavor, often used in culinary dishes and beverages.

Complements

Goods or services that are used together such that the demand for one increases when the price of the other decreases.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, holding all else constant.