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