Question
Blaine Ave.,, Company, spent $123,000 on fixed manufacturing overhead during the year. At the beginning of the year, the company had budgeted to spend $140,000
Blaine Ave.,, Company, spent $123,000 on fixed manufacturing overhead during the year. At the beginning of the year, the company had budgeted to spend $140,000 on fixed manufacturing overhead into work 2000 direct labor hours (based on expected production of 500 units for four direct labor hours per unit). The actual number of units produced during the year was 600. Fixed manufacturing overhead is applied to production based on direct labor.
Compute the fixed manufacturing overhead VOLUME variance.
A. 45,000 favorable.
B. 17,000 unfavorable.
C. 28,000 favorable.
D. 28,000 unfavorable.
E. 45,000 unfavorable.
F. 17,000 favorable.
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