Fixed Overhead Was Budgeted at $85,000, and 10,000 Direct Labour

question 113

Multiple Choice

Fixed overhead was budgeted at $85,000, and 10,000 direct labour hours were budgeted. Suppose the fixed overhead volume variance was $5,000 unfavourable and the fixed overhead spending variance was $1,200 favourable. How much fixed overhead was applied?

• A) $80,000
• B) $82,000
• C) $82,800
• D) $90,000

---

Definitions:

Job Creation

The process of providing new employment opportunities, often seen as a critical aspect of economic growth and development.

State Investment

Financial contributions or assets placed by government entities into projects, companies, or other ventures to stimulate economic growth or achieve policy objectives.

Partial Ownership

A situation where an entity or individual holds an interest or stake in a business or property but does not have full control or possession of it.

Subsidies

Financial support extended by the government to an economic sector, business, or individual, aimed at promoting beneficial activities or reducing costs.