The Managerial Accountant at Space Right Office Cubicles Calculates Fixed

question 138

Multiple Choice

The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report.The actual fixed overhead cost in the month of August was $56,400 and the budgeted fixed overhead cost was $58,100.The standard hours in August were 3,200 and the standard rate per machine-hour was $18.Calculate the standard fixed overhead cost allocated to production,the fixed overhead budget variance,and the fixed overhead volume variance.

• A)$58,100;$2,200 U;$1,200 F
• B)$56,400;$1,300 U;$1,700 F
• C)$57,600;$1,700 U;$500 F
• D)$52,300;$1,200 U;$1,700 F

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Definitions:

Consumer Good

Goods that are produced for personal consumption by the general public.

Inelastic

Describing demand that is relatively unresponsive to changes in price.

Quantity Demanded

This is the total amount of a good or service that consumers want to buy at a specific price level, within a certain period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.