Question
The following budget data pertain to the Machining Department of Yolkenverst Co.: Maximum capacity 69,000 units Machine hours per unit 2.50 Variable factory overhead $
The following budget data pertain to the Machining Department of Yolkenverst Co.:
Maximum capacity | 69,000 | units | |
Machine hours per unit | 2.50 | ||
Variable factory overhead | $ | 3.40 | per machine hour |
Fixed factory overhead | $ | 434,900 | |
The company prepared the budget at 74% 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 $434,900 of fixed overhead. For the current year the department has a fixed overhead production volume variance, rounded to the nearest whole dollar, of: (Round your intermediate calculation to 2 decimal places.)
rev: 10_22_2018_QC_CS-144385
Multiple Choice
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$9,031 unfavorable.
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$2,869 unfavorable.
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$3,069 unfavorable.
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$6,469 unfavorable.
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$0.
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