Fixed Overhead Was Budgeted at $200,000, and 25,000 Direct Labor

question 124

Multiple Choice

Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be

• A) $208,000.
• B) $206,000.
• C) $202,000.
• D) $194,000.

---

Definitions:

Homeostasis

A state of internal balance within living organisms, despite changes in external environment.

Energy

The capacity to do work or produce changes within a system, present in various forms such as kinetic, potential, thermal, etc.

Chemicals

Substances produced by or used in a chemical process, often referring to synthetic compounds.

Ecosystem

A biological community of interacting organisms and their physical environment, interconnected through nutrient cycles and energy flows.