Question
Evening Star Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours.The following information is available
Evening Star Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours.The following information is available for the most recent month:
Machine-hour standard: Two machine hours perunit
Standard fixed overhead rate: $20 per machine hour
Actual production: 15,000 units
Over-applied fixed overhead: $30,000
Fixed overhead budget variance: $50,000 favorable
The budgeted fixed overhead and the fixed overhead volume variance, respectively, are
$620,000 and -$20,000
$680,000 and $80,000
$650,000 and $50,000
$620,000 and $20,000
$650,000 and -$50,000
$680,000 and -$80,000
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