Wetzel Company Has Actual Fixed Overhead Costs of $14,500

question 66

Multiple Choice

Wetzel Company has actual fixed overhead costs of $14,500.Fixed overhead costs based on the flexible budget and the standard use of the cost driver are $14,400.Actual variable overhead costs are $14,700.Flexible budget costs for variable overhead costs are $15,000.What is the flexible-budget variance for fixed overhead costs?

• A) $100 Favorable
• B) $100 Unfavorable
• C) $300 Favorable
• D) $300 Unfavorable

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Definitions:

Mississippi

A state in the southern United States, known for its namesake river, rich cultural heritage, and significant role in American history, particularly during the Civil War and the civil rights movement.

Slave Families

Units of enslaved people, often forcibly separated by slave trade or owners, who formed familial bonds within the constraints of slavery in historical contexts.

West Indies

A region of the North Atlantic Ocean in the Caribbean, encompassing a series of islands including the Greater and Lesser Antilles, known for its diverse cultures and histories.

Paternalistic

A system or policy that governs people in a manner that is authoritarian but claims to be benevolent and in the best interest of the people being controlled.