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A firm's static budget predicted $250,000 in fixed overhead costs. The firm's PDOH is $40 per machine hour, 75% of which was for variable overhead.
A firm's static budget predicted $250,000 in fixed overhead costs. The firm's PDOH is $40 per machine hour, 75% of which was for variable overhead. The firm's actual machine hours were 24,000. The firm's actual fixed overhead costs were $265,000.
What is the firm's fixed overhead volume variance (round final answer to cents if necessary)?
a. | $10,000 favorable | |
b. | $25,000 unfavorable | |
c. | $25,000 favorable | |
d. | $10,000 unfavorable |
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