The Following Information Was Compiled by Frank Ironman Incorporated Assume the Cost Allocation Base for Overhead Costs Is Units

question 11

Multiple Choice

The following information was compiled by Frank Ironman Incorporated:
$\begin{array} { l } \text {Expected volume of production }&50,000 \text { units }\\ \text {Actual volume of production }&47,500 \text { units }\\ \text { Budgeted fixed overhead costs (for 50,000 budgeted units) }&\$200,000 \\ \text {Actual fixed overhead costs }&\$220,000 \\ \text { Actual variable overhead costs}&\$790,000 \\ \text { Budgeted variable overhead costs (for 50,000 bud geted units) }&\$ 855,000\\\end{array}$

Assume the cost allocation base for overhead costs is units of production.What is the fixed overhead flexible budget variance?

• A) $6,000 Favorable
• B) $12,000 Unfavorable
• C) $20,000 Favorable
• D) $20,000 Unfavorable

---

Definitions:

Planned Organizational Change

A deliberate effort to modify procedures, policies, or the structure of an organization to achieve improved effectiveness.

Goal-Oriented Change

Change that is specifically aimed at achieving certain objectives or outcomes.

Organizations

Groups of individuals structured and managed to meet a need or pursue collective goals.

Globalization

The method through which companies or various organizations gain international impact or begin functioning globally.