Question
17) Core Technology Company's operational management team is assessing a productionminusvolume variance. Budgeted fixed overhead cost is $390,000. Using past data, one unit of output
17) Core Technology Company's operational management team is assessing a productionminusvolume variance. Budgeted fixed overhead cost is $390,000. Using past data, one unit of output is budgeted to take 2.0 machine hours and fixed overhead is allocated to actual output at the rate of $20 per machine hour. The actual output is 10,000 units. Required Compute the productionminusvolume variance for this period and indicate whether the value indicates a favorable, F, or an unfavorable, U, variance. A. $3,900; U
B. $10,000; F
C. $1,000; U
D. $1,000; F
E. $10,000; U
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