A $5,000 Unfavorable Flexible-Budget Variance Indicates That ________

question 46

Multiple Choice

A $5,000 unfavorable flexible-budget variance indicates that ________.

• A) the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000
• B) the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000
• C) the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000
• D) the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000

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Definitions:

Produced

The act of creating, manufacturing, or bringing into existence goods and services.

Consumer Surplus

The disparity between what consumers are prepared and can afford to spend on a product or service compared to the actual amount they end up paying.

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Tariff Revenue

Income that governments earn from imposing taxes on imported goods to protect domestic industries or generate income.