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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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