White Company Budgeted for $200,000 of Fixed Overhead Cost and Volume

question 18

Multiple Choice

White Company budgeted for $200,000 of fixed overhead cost and volume of 40,000 units.During the year,the company produced and sold 39,000 units and spent $210,000 on fixed overhead. The fixed overhead cost volume variance is:

• A) $10,000 favorable.
• B) $10,000 unfavorable.
• C) $5,000 favorable.
• D) $5,000 unfavorable.

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Definitions:

Taxable Income

The amount of an individual's or a corporation's income that is subject to taxation by government authorities.

Progressive

Refers to a type of tax system in which tax rates increase as the taxable amount increases.

Regressive

Refers to systems, especially tax systems, where the rate decreases as the amount subject to taxation increases, placing more of a burden on low-income earners.

OECD

The Organisation for Economic Co-operation and Development, an international organization that works to build better policies for better lives, promoting policies to improve the economic and social well-being of people around the world.