The Landrum Company Provides the Following Standard Cost Data Per $$\begin{array} { | l | l | } \hline \text { Variable overhead } & \$ 8.00\\\hline\end{array}$$

question 21

Multiple Choice

The Landrum Company provides the following standard cost data per unit of product: 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:
$$\begin{array} { | l | l | } \hline \text { Variable overhead } & \$ 8.00\\\hline\end{array}$$

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

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Definitions:

Pays Out

Refers to the act of distributing or disbursing money, such as dividends to shareholders or winnings to gamblers.

Standard Deviation

A statistic that measures the dispersion or variation of a set of values relative to the mean.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon, with each outcome having a probability associated with it.

Packet of Rice

A pre-measured, packaged amount of rice, typically sold in a sealed bag or box.