Question
Answer the following questions (#25 and #26) using the information below: Jenny's Corporation manufactured 26,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate
Answer the following questions (#25 and #26) using the information below:
Jenny's Corporation manufactured 26,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20 per machine-hour. The following fixed overhead data pertain to March:
Actual Static Budget
Production 26,000 units 24,000 units
Machine-hours 6,100 hours 6,000 hours
Fixed overhead costs $126,000 $120,000
What is the fixed overhead spending variance?
- A.
$6,000 unfavorable
- B.
$2,000 unfavorable
- C.
$4,000 favorable
- D.
$10,000 favorable
Jenny's Corporation manufactured 26,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20 per machine-hour. The following fixed overhead data pertain to March:
Actual Static Budget
Production 26,000 units 24,000 units
Machine-hours 6,100 hours 6,000 hours
Fixed overhead costs $126,000 $120,000
What is the fixed overhead production-volume variance?
- A.
$4,000 favorable
- B.
$10,000 favorable
- C.
$2,000 unfavorable
- D.
$6,000 unfavorable
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