Underfoot Products Uses Standard Costing Compute the Fixed Overhead Budget Variance

question 27

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 budget variance.

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

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Definitions:

Phobia

An intense, irrational fear of specific objects, situations, or activities that can significantly interfere with daily functioning.

Modeling

A method used in psychology to learn new behaviors by observing and imitating others.

Systematic Desensitization

A behavioral therapy technique that gradually exposes the individual to the object of their fear in a controlled manner, alongside relaxation exercises, to reduce phobic responses.

Flooding

An exposure therapy technique used in psychology to treat phobias and anxiety by exposing the patient to their fear at full intensity.