Underfoot Products Uses Standard Costing - Compute the Fixed Overhead Volume Variance

question 106

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 volume variance.

• A) $5,000 (U)
• B) $10,000 (U)
• C) $10,000 (F)
• D) $15,000 (F)

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Definitions:

Gluteus Medius

A muscle of the buttock that is involved in the abduction and internal rotation of the thigh.

Extensor Carpi Radialis

A muscle of the forearm that extends and abducts the wrist.

Biceps Brachii

A large muscle in the upper arm responsible for forearm rotation and flexion of the elbow.

Flexor of Forelimb

Muscles responsible for bending joints and allowing the forelimb to flex.