Use the Following Information to Answer the Following Questions

question 23

Multiple Choice

Use the following information to answer the following Questions
Sigmo Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,600
Actual machine hours worked: 51,800
Actual variable overhead incurred: $475,000
Actual fixed overhead incurred: $790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours

-Sigmo's fixed-overhead budget variance is:

• A) $9,900U.
• B) $9,900F.
• C) $28,800U.
• D) $28,800F.
• E) None of the answers is correct.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Return on Equity

A measure of the profitability of a business in relation to the equity, indicating how effectively equity is used to generate profits.

Total Stockholders' Equity

The total amount of funds contributed by investors and the accumulated earnings of a company, less any dividends paid.