Frekko Company Collected the Following Information -Refer to the Figure

question 31

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 three variance method,what is the budget variance?

• A)$6,000 (F)
• B)$6,000 (U)
• C)$24,000 (F)
• D)$24,000 (U)

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Definitions:

Data Analysis

The process of systematically applying statistical and/or logical techniques to describe, illustrate, condense, recap, and evaluate data.

Testing Hypotheses

The process of carrying out experiments or observations to determine whether the initial assumptions (hypotheses) are supported or refuted.

Scientific Method

A systematic approach to research and experimentation characterized by observation, hypothesis formulation, experimentation, and conclusions.

Observing Some Phenomenon

The act of carefully watching, tracking, or analyzing an occurrence, event, or thing to gather data and draw conclusions.