Underfoot Products Uses Standard Costing Compute the Fixed Overhead Volume Variance

question 3

Multiple Choice

Underfoot Products uses standard costing.The following information about overhead was generated during May: $$\begin{array} { l l } \text { Standard variable overhead rate } & \$ 2 \text { per machine how } \\\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 390,000 \\\text { Actual fixed cverhead costs } & \$ 175,000 \\\text { Budgeted fixed cverhead costs } & \$ 190,000 \\\text { Standard machine hours per unit produced } & 10 \\\text { Good units produced } & 18,000 \\\text { Actual machine hours } & 200,000\end{array}$$
Compute the fixed overhead volume variance.

• A) $5,000 (U)
• B) $10,000 (U)
• C) $10,000 (F)
• D) $15,000 (F)

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Definitions:

Bulimia Nervosa

An eating disorder characterized by habitually engaging in out-of-control overeating followed by unhealthy compensatory efforts, such as self-induced vomiting, fasting, abuse of laxatives and diuretics, and excessive exercise.

Self-induced Vomiting

The act of voluntarily causing oneself to vomit, often as a symptom of eating disorders like bulimia nervosa.

Compensatory Efforts

Actions taken to make up for or overcome deficiencies, disadvantages, or errors, often aiming to achieve a state of balance or equity.

Anorexia Nervosa

An eating disorder characterized by intense fear of gaining weight, disturbed body image, refusal to maintain normal weight, and use of dangerous measures to lose weight.