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)

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Definitions:

Ventral Body Cavities

The body's anterior (front) cavities, including the thoracic, abdominal, and pelvic cavities, housing major internal organs.

Serous

Relating to or producing a watery fluid, like that found lining certain cavities or as a component of blood serum.

Mucous

A thick, slippery substance produced by mucous membranes and glands to lubricate and protect certain parts of the body like the nasal passages and gastrointestinal tract.

Epithelium And Connective

These terms refer to two types of tissues; epithelium is a layer of cells covering the body surfaces or lining cavities, while connective tissue supports, binds, or separates other tissues and organs.