Fixed Overhead Was Budgeted at $200,000, and 25,000 Direct Labor

question 124

Multiple Choice

Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be

• A) $208,000.
• B) $206,000.
• C) $202,000.
• D) $194,000.

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