Donellan Company Has a Standard and Flexible Budgeting System and Uses

question 8

Multiple Choice

Donellan Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead.Selected data for the February production activity follows: The flexible-budget variance for February is:

• A)$5,000 favorable.
• B)$5,000 unfavorable.
• C)$2,000 favorable.
• D)$2,000 unfavorable.

---

Definitions:

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.

General Partnership

A form of partnership where all partners share unlimited liability for the business's debts and obligations.

Profits

The financial surplus remaining after all expenses, including taxes and operating costs, have been deducted from total revenue.

Management Responsibilities

The duties and obligations that managers have to oversee and guide their organization effectively.