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Carvelle Cabinets set the following standard cost per unit for 2019. Fixed overhead (4 machine hours at $10) $40 Variable overhead (4 machine hours at
Carvelle Cabinets set the following standard cost per unit for 2019.
Fixed overhead (4 machine hours at $10) $40
Variable overhead (4 machine hours at $8) $32
The standards were set based on a capacity of 20 000 machine hours. During the year, 5100 units were produced.
Fixed overhead $ 204,528
Variable overhead $ 165,750
What was Carvelle's fixed overhead budget variance?
Consider that negative number means Favourable variance and positive number means Unfavourable variance.
Could you work it out the answer?
Correct answer is $4,528
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