Use the Information Below to Answer the Following Question(s)

question 8

Multiple Choice

Use the information below to answer the following question(s) .Regal Company uses a single cost pool for fixed manufacturing overhead.The amount for June 2019 was budgeted at $500,000; however, the actual amount was $700,000.Actual production for June was 12,500 units, and actual machine hours were 10,000.Budgeted production included 17,750 units and 12,375 machine hours.
-Leek Company predicted that the fixed overhead would be $200,000 in April 2018.Production amounted to 60,000 actual and 50,000 budgeted decks of cards.Each deck takes approximately 0.20 machine hours to produce.The actual overhead costs per machine hour are $25.What is the production-volume variance?

• A)$40,000 unfavourable
• B)$40,000 favourable
• C)$150,000 unfavourable
• D)$150,000 favourable
• E)$0