Frekko Company Collected the Following Information -Refer to the Figure

question 25

Multiple Choice

Frekko Company collected the following information:
$\begin{array}{lr}\text { Standard costs per unit: }\\\text { Variable overhead } & 4 \text { machine hours @\$6 per machine hour } \\\text { Fixed overhead } & 4 \text { machine hours } @ \$ 10 \text { per machine hour }\end{array}$


$\begin{array}{l}\text { Actual output }&20,000 \text { units } \\\text { Denominator (normal capacity) output } & 21,000 \text { units } \\\text { Actual machine hours } & 79,000 \text { machine hours } \\\text { Actual variable overhead cost } & \$ 540,000 \\\text { Actual fixed overhead cost } & \$ 810,000\end{array}$
-Refer to the figure.Using the two variance method,what is the volume variance?

• A)$6,000 (F)
• B)$6,000 (U)
• C)$40,000 (F)
• D)$40,000 (U)

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Definitions:

Interest Earned

The profit gained from investing or saving, typically represented as a percentage of the original investment.

Compounded Quarterly

Interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, influencing the amount in the next quarter.

Promissory Note

A monetary contract where one party commits to paying a distinct sum to another party, either on call or at a set date ahead.

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment, loan, or deposit twice a year, leading to interest earning on interest previously accumulated.