Question
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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Auditing Your Human Resources Department A Step By Step Guide
Authors: John H. McConnell
1st Edition
0814474675, 978-0814474679
