Question
The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity Machine hours per unit 68,000 units 2.50 11 Variable factory overhead
The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity Machine hours per unit 68,000 units 2.50 11 Variable factory overhead $ Fixed factory overhead 3.20 per machine hour $430,000 The company prepared the budget at 75% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production. During the year the Machining Department produced 50,000 units, consuming 127,500 machine hours and incurring $430,000 of fixed overhead. For the current year the department has a fixed overhead production volme variance, rounded to the nearest whole dollar, of: (Round your Intermediate calculation to 2 decimal places.) Multiple Choice O $7,070 unfavorable. $0. $3,470 unfavorable. $8,430 unfavorable. $3,670 unfavorable
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