Fixed Overhead Was Budgeted at $84,000 and 10,000 Direct Labor

question 175

Multiple Choice

Fixed overhead was budgeted at $84,000 and 10,000 direct labor hours were budgeted.If the fixed overhead volume variance was $3,200 unfavorable and the fixed overhead spending variance was $1,200 favorable, fixed overhead applied must be

• A) $85,200.
• B) $80,800.
• C) $82,800.
• D) $82,000.
• E) $87,200.

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Definitions:

Incidental Damages

Compensation for secondary or unforeseen losses resulting from a breach of contract.

Contract Remedies

Legal actions or measures that a court can order to enforce a contract, compensate for breach, or protect a party's rights under a contract.

Monetary Damages

Financial compensation awarded to a party in a lawsuit for losses or injuries suffered as a result of the defendant's actions.

Foreseeability

The concept that certain events may reasonably be predicted and thus potentially obligate parties to take preventative measures.