The Landrum Company Provides the Following Standard Cost Data Per $\begin{array}{l}\text { Var'iable overhead }&\$ 8.00\end{array}$

question 109

Multiple Choice

The Landrum Company provides the following standard cost data per unit of product: $\begin{array}{l}\text { Var'iable overhead }&\$ 8.00\end{array}$
Landrum anticipated that they would produce and sell 24,000 units.During the period,the company produced and sold 25,000 units,incurring $210,000 of variable overhead costs.
The variable overhead flexible budget variance was:

• A) $8,000 unfavorable.
• B) $10,000 unfavorable.
• C) $8,000 favorable.
• D) $10,000 favorable.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and differentiated competition.

Differentiated Products

Goods or services that are distinguished from others by quality, design, branding, or other features, even if they serve the same purpose.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Short Run

A period in economics during which at least one factor of production is fixed in quantity; the opposite of the long run, where all factors of production are variable.