Fixed Overhead Was Budgeted at $250,000, and 25,000 Direct Labour

question 50

Multiple Choice

Fixed overhead was budgeted at $250,000, and 25,000 direct labour hours were budgeted. Suppose the fixed overhead volume variance was $10,000 favourable and the fixed overhead spending variance was $6,000 unfavourable. How much fixed overhead was applied?

• A) $194,000
• B) $202,000
• C) $206,000
• D) $260,000