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47 . Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of Is product on the basis of direct
47 . Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of Is product on the basis of direct labour - hours . The information below is taken from the company's flexible budget for manufacturing overhead Percent of capacity 70 0 80 Direct labour- hours 1000 24.000 27000 Variable overhead $ 42000 $ 48000 8 54 000 Fixed overhead 108000 108000 108.001 Total overhead $150.000 $156000 $162000 During the year , the company operated at exactly 80% of capacity , but applied manufacturing overhead to products based on the 90% level . The company's fixed overhead volume variance for the year was ? A . $6000 unfavourable B. $6000 favourable C . $12000 unfavourable D. $12000 favourable
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