Wave Fashions Uses Standard Costs for Its Manufacturing Division A)$8000 U
B)$8000 F
C)$14,000 U
D)$14,000 F

question 185

Multiple Choice

Wave Fashions uses standard costs for its manufacturing division.The allocation base for overhead costs is direct labor hours.From the following data,calculate the total fixed overhead variance. $$\begin{array} { | l | r | } \hline \text { Actual fixed overhead } & \$ 36,000 \\\hline \text { Budgeted fixed overhead } & \$ 24,500 \\\hline \text { Allocated fixed overhead } & \$ 28,000 \\\hline \text { Standard overhead allocation rate } & \$ 7,00 \\\hline \text { Standard direct labor hours per unit } & 2.00 \text { DLHr } \\\hline \text { Actual output } & 2000 \text { units } \\\hline\end{array}$$

• A)$8000 U
• B)$8000 F
• C)$14,000 U
• D)$14,000 F

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Definitions:

Incisors

The front teeth in mammals, typically characterized by their sharp edges for cutting food.

Complex Carbohydrate

Carbohydrates consisting of long chains of monosaccharide units bound together, offering energy and fiber.

Sucrose

A disaccharide composed of glucose and fructose, commonly known as table sugar and used as a sweetener and preservative.

Gallbladder

A small organ located under the liver that stores bile, a fluid produced by the liver to digest fats.