Budgeted Output for DuCane Small Engines Inc

question 5

Multiple Choice

Budgeted output for DuCane Small Engines Inc. was 20,000 engines during February 2012. 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 overhead 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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