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Fiona Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced
Fiona Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced :14,800
Actual fixed overhead incurred :AED791,000
Standard fixed overhead rate :AED13 per hour
Budgeted fixed overhead :AED780,000
Planned level of machine-hour activity :60,000
If Fiona estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be:
AED10,400 unfavorable.
AED11,000 favorable.
AED10,400 favorable.
AED11,000 unfavorable
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