Question
Lloyd Company produces music boxes. The standard factory overhead cost at 100% of normal capacity is $100,000 (20,000 hours at $5: $3 variable, $2 fixed).
Lloyd Company produces music boxes. The standard factory overhead cost at 100% of normal capacity is $100,000 (20,000 hours at $5: $3 variable, $2 fixed). If 700 hours were unused, the fixed factory overhead volume vari-ance would be:
a. $700 favorable
b. $1,400 favorable
c. $2,100 unfavorable
d. $1,400 unfavorable
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Financial Accounting
Authors: Robert Libby, Patricia A Libby
7th Edition
0078111021, 9780078111020
