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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 | $ 28,000 |
---|---|
Actual fixed overhead cost incurred | $ 7,000 |
Budgeted fixed overhead cost | $ 10,000 |
Actual machine hours | 8,000 |
Standard machine hours allowed for the units manufactured | 5,500 |
Denominator volumemachine hours | 6,200 |
Standard variable overhead rate per machine hour | $ 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
$129 favorable.
$1,129 unfavorable.
$1,129 favorable.
$329 unfavorable.
$1,829 favorable.
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