Underfoot Products Uses Standard Costing Compute the Fixed Overhead Volume Variance

question 4

Multiple Choice

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

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

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Definitions:

Exercise Shoes

Footwear designed specifically to provide support, stability, and comfort during physical activity, reducing the risk of injury.

Simulating

Imitating or replicating certain conditions or stimuli for the purpose of study, training, or experimentation.

Popular Color

A color that is currently favored by a large segment of the public or is trendy during a particular time period.

Heels Slip

The phenomenon of the back part of a shoe or heel moving out of place, often leading to discomfort or instability while walking.