Mzimba Sofa Company Has Developed the Following Manufacturing Overhead Standards

question 21

Multiple Choice

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours. The above standards were based on an expected annual volume of 20,000 sofas. The actual results last year were as follows:
-What was Mzimba's fixed manufacturing overhead volume variance?

• A) $12,080 favorable
• B) $42,920 unfavorable
• C) $61,000 unfavorable
• D) $73,080 favorable

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Definitions:

Armed Forces

Military forces established by a nation to defend its interests and maintain security.

War Production Board

A U.S. government agency established during World War II to coordinate the production of war materials and supplies.

Allocating Resources

The process of distributing available resources, such as finances, materials, and labor, for specific tasks or projects to achieve desired objectives.

Independent Factories

Manufacturing facilities that operate autonomously, not as part of larger conglomerates or corporations, often characterized by specialized production.