Fixed Overhead Was Budgeted at £500,000 and 25,000 Direct Labour

question 18

Multiple Choice

Fixed overhead was budgeted at £500,000 and 25,000 direct labour hours were budgeted. If the fixed overhead volume variance was £12,000 favourable and the fixed overhead spending variance was £16,000 unfavourable, fixed overhead applied must be

• A)£516,000.
• B)£512,000.
• C)£504,000.
• D)£528,000.

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