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

question 71

Multiple Choice

Fixed manufacturing overhead was budgeted at $200,000,and 25,000 direct labour hours were budgeted.If the fixed overhead volume variance was $8,000 favourable and the fixed overhead spending variance was $6,000 unfavourable,what would be the fixed manufacturing overhead applied?

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

---

Definitions:

Value Engineering

A systematic method to improve the "value" of goods or products and services by using an examination of function.

Product Design

The process of creating a new product to be sold by a business to its customers, involving concept development, solution sketching, prototyping, and testing.

Value Analysis

A methodical approach to identify and eliminate unnecessary costs in product design and manufacturing without sacrificing functionality or quality.

Disposable Packaging

Packaging materials designed for a single use before being discarded or recycled.