Underfoot Products Uses Standard Costing - Compute the Fixed Overhead Variance

question 98

Multiple Choice

Underfoot Products uses standard costing. The following information about overhead was generated during May: $\begin{array}{c}\begin{array}{lrr} \text {Standard variable overhead rate } &\\ \text { Standard fixed overhead rate} &\\ \text { Actual variable overhead costs} &\\ \text { Actual fixed overhead costs} &\\ \text { Budgeted fixed overhead costs} &\\ \text { Standard machine hours per unit produced } &\\ \text { Good units prockuced } &\\ \text { Actual machine hours } \end{array}\begin{array}{lll} \text { \$ 2 per machine hours }\\ \text {\$ 1 per machine hours}\\\$ 390,000\\\$ 175,000 \\ \$ 190,000\\10\\18,000\\195,000 \end{array}\end{array}$
- 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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