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

question 100

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.
-Budgeted output for DuCane Small Engines Inc.was 20,000 engines during February 2019.Budgeted fixed overhead per output unit was $2.50, and 30,000 engines were actually produced.Actual fixed overhead was allocated at $3.00 per engine.What is the production-volume variance?

• A)$33,500 favourable
• B)$25,000 unfavourable
• C)$30,000 favourable
• D)$30,000 unfavourable
• E)$25,000 favourable

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