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The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs:
Actual total factory overhead cost incurred | $ | 35,000 | |
Actual fixed overhead cost incurred | $ | 14,000 | |
Budgeted fixed overhead cost | $ | 10,000 | |
Actual machine hours | 8,000 | ||
Standard machine hours allowed for the units manufactured | 4,900 | ||
Denominator volumemachine hours | 5,600 | ||
Standard variable overhead rate per machine hour | $ | 3 | |
The fixed factory overhead production-volume variance, to the nearest whole dollar, is: (Do not round your intermediate calculations.)
Multiple Choice
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$450 unfavorable.
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$850 favorable.
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$1,250 unfavorable.
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$1,350 favorable.
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$1,950 favorable.
Please show your work, thanks!
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