Fixed Overhead Was Budgeted at $84,000 and 10,000 Direct Labor

question 175

Multiple Choice

Fixed overhead was budgeted at $84,000 and 10,000 direct labor hours were budgeted.If the fixed overhead volume variance was $3,200 unfavorable and the fixed overhead spending variance was $1,200 favorable, fixed overhead applied must be

• A) $85,200.
• B) $80,800.
• C) $82,800.
• D) $82,000.
• E) $87,200.

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Definitions:

Particular Fund

A specific pool of money that is designated for a particular purpose or investment strategy.

Unconditional Promise

A commitment that is absolute and not subject to any conditions or contingencies.

Payable to Bearer

A designation on a financial instrument (like a check) meaning the person in possession of it can redeem it for its value.

UCC

The Uniform Commercial Code comprises a broad framework of regulations that control commerce transactions within the United States.