Underfoot Products Uses Standard Costing Compute the Fixed Overhead Variance

question 84

Multiple Choice

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

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

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Definitions:

Fixture

A thing attached to land or to a building or to another fixture attached to the land.

Found Property

Items that are discovered by someone that do not belong to them, often leading to legal questions about ownership and the right to possess.

Chose in Action

A legal term for a personal right to something not in one's possession but recoverable by legal means, such as debts or securities.

CEPA

Canadian Environmental Protection Act, a legislative framework for protecting the Canadian environment and human health by preventing pollution and managing chemicals.