The Standard Costs and Actual Costs for Factory Overhead for the Manufacture

question 100

Multiple Choice

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: The amount of the factory overhead controllable variance is:

• A) $2,000 unfavorable
• B) $3,000 favorable
• C) $0
• D) $3,000 unfavorable

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Definitions:

Real GDP

Real GDP measures the value of all final goods and services produced within a country in a given period of time, adjusted for inflation, providing a more accurate picture of an economy's size and how it's growing over time.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar output by adjusting for inflation.

Nominal GDP

Gross Domestic Product measured in current prices without adjusting for inflation, representing the total value of all goods and services produced over a specific time period within a country's borders.

Real GDP

The calculation of a nation's total economic production factoring in adjustments for price fluctuations, either inflationary or deflationary.