Underfoot Products Uses Standard Costing Compute the Fixed Overhead Variance

question 26

Multiple Choice

Underfoot Products uses standard costing. The following information about overhead was generated during May: $\begin{array}{ll}\text { Standard variable overhead rate } & \$ 2 \text { per machine hour } \\\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \\\text { Actual variable overhead costs } & \$ 390,000 \\\text { Actual fixed overhead costs } & \$ 175,000 \\\text { Budgeted fixed overhead costs } & \$ 190,000 \\\text { Standard machine hours per unit produced } & 10 \\\text { Good units produced } & 18,000 \\\text { Actual machine hours } & 200,000\end{array}$ Compute the fixed overhead variance.

• A) $5,000 (F)
• B) $5,000 (U)
• C) $10,000 (U)
• D) $10,000 (F)

Understand and apply strategies for medication management and patient education in home care.

Recognize and utilize standardized nursing languages and taxonomies for documentation and care planning.

Identify roles and responsibilities of community health nurses in advocating for and meeting community health needs.

Assess communities to plan relevant health programs based on demographic data and health status.

---

Definitions:

Asset Beta

A measure of the systematic risk of a firm's assets, used in the Capital Asset Pricing Model (CAPM) to determine the expected return of the asset.

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.