Carvelle Cabinets Set the Following Standard Cost Per Unit for 2008

question 70

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 volume variance?

• A) $4000 favourable
• B) $1000 unfavourable
• C) $2000 favourable
• D) $4000 unfavourable

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another, typically seen in contracts and agreements.

Sublease

A transfer of less than all of a tenant’s interest in a leased property.

Assignee

In a contract, the party who receives the rights of another party (an assignor) to collect what was contractually agreed on in the original contract.

Assignor

In a contract, the party who transfers his or her rights to a contract to a third party (an assignee), giving the assignee the right to collect what was contractually agreed on in the original contract.