Carvelle Cabinets Set the Following Standard Cost Per Unit for 2008

question 58

Multiple Choice

Carvelle Cabinets set the following standard cost per unit for 2008.
The standards were set based on a capacity of 20 000 machine hours.
During the year, 5100 units were produced.
What was Carvelle's fixed overhead budget variance?

• A) $2000 unfavourable
• B) $7000 unfavourable
• C) $5000 unfavourable
• D) $4000 favourable

---

Definitions:

Past Fact

Information or events that have already occurred and are considered in the making of decisions or judgment.

Undue Influence

Improper or unfair persuasion by one party over another, often resulting in decisions or agreements that benefit the influencer.

Clergyman

A male priest, minister, or religious leader, especially one authorized to perform sacred rituals and ceremonies in Christian denominations.

Emotional Susceptibility

A person's tendency to be easily affected by emotional experiences or to be more sensitive to emotional stimuli.