Forward Venture Company, which uses a standard cost system, budgeted $600,000 of fixed overhead when 40,000 machine hours were anticipated. Other data for the period were:Actual units produced: 10,000Standard production time per unit: 3.9 machine hoursFixed overhead incurred: $620,000Actual machine hours worked: 42,000Forward Venture Company's fixed-overhead volume variance is:
A. $10,000 favorable.
B. $20,000 unfavorable.
C. $15,000 unfavorable.
D. $20,000 favorable.
E. $15,000 favorable.
Answer: C
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a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Assets decrease and liabilities decrease. d. Stockholders' equity increases and decreases by the same amount.
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Indicate whether the statement is true or false
Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of contribution margin for 20,000 units would be:
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