Use the Below Information to Answer the Following Questions:
Bekits

question 176

Multiple Choice

Use the below information to answer the following questions:
Bekits Corporation manufactured 25,000 grooming kits for horses during March. The following fixed overhead data relates to March:
$\begin{array}{lrr}&\text { Actual }&\text { Static Budget }\\\text { Production } & 37,500 \text { units } & 36,000 \text { units } \\\text { Machine-hours } & 6,100 \text { hours } & 5,940 \text { hours } \\\text { Fixed overhead costs for March } & \$ 133,000 & \$ 124,740\end{array}$
-What is the fixed overhead spending variance?

• A) $3,062.5 unfavorable
• B) $8,260 favorable
• C) $8,260 unfavorable
• D) $3,062.5 favorable

---

Definitions:

Vertically Integrated

A company structure where the company owns its supply chain, from raw materials to the sale of the finished product, to control costs and quality.

Expected Profit

The forecasted amount of profit calculated by multiplying potential outcomes by their probabilities of occurrence.

Expected Profit

The anticipated financial return from an investment or business activity, considering potential risks and earnings.

Optimal Quantity

The most favorable amount of goods or services, determined through analysis, to meet specific objectives like minimizing costs or maximizing profit.