-The Above Table Is a ________

question 27

Multiple Choice

$$\begin{array}{l}\begin{array} { l c c c } &&\text { Prod uction- }\\\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \\\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \\\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }\end{array}\end{array}$$
-The above table is a ________.

• A) 4-variance analysis
• B) 3-variance analysis
• C) 2-variance analysis
• D) 1-variance analysis

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time frame, such as rent, salaries, and insurance.

Variable Cost

Charges that adjust in accordance with the quantity of production or the scale of sales.

Incremental Profit

The additional profit derived from a specific business decision, comparing the profit levels before and after the decision.

Selling Price

The amount at which a product or service is sold to customers.