The Standard Variable Overhead Cost Rate for the Gordon Company

question 157

Multiple Choice

The standard variable overhead cost rate for the Gordon Company is $13.25 per unit. Budgeted fixed overhead cost is $80,000. The company budgeted 8000 units for the current period and actually produced 4100 finished units. What is the fixed overhead volume variance? Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

• A)$39,000 favorable
• B)$25,675 unfavorable
• C)$25,675 favorable
• D)$39,000 unfavorable

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