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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $ 35,000 $14,000 $ 10,000 8,000 4,900 5,600 $ 3 Under a three-variance breakdown (decomposition) of the total factory overhead variance, the fixed factory overhead production-volume variance (to the nearest whole dollar) is: (Do not round your intermediate calculations; Round your final answer to zero decimal places.) Multiple Choice $1,950 favorable. $250 favorable
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