Zenith Fashions uses standard costs for their manufacturing division. From the following data, calculate the fixed overhead cost variance.

A) $3,000 F

B) $3,000 U

C) $5,000 F

D) $5,000 U

Answer: D

Actual fixed overhead Budgeted fixed overhead Standard overhead allocation rate $7 Standard direct labor hours per unit Actual output $30,000 $25,000 2 Dhr 2,000 units