Cabot Company Collected the Following Data Regarding Production of One

question 158

Multiple Choice

Cabot Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.

• A) $18,300 favorable.
• B) $18,000 favorable.
• C) $18,000 unfavorable.
• D) $18,300 unfavorable.
• E) $14,300 unfavorable.

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Definitions:

Product Supply

The total amount of a product or service that is available for purchase by consumers at a given price point and time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Market Equilibrium

is the state in which market supply equals market demand, resulting in stable prices where the quantity of goods supplied equals the quantity of goods demanded.

Excess Supply

A market condition where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers, typically leading to a drop in prices.