Rich Company, Which Uses a Standard Cost System, Budgeted $800,000

question 21

Multiple Choice

Rich Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,600
Actual machine hours worked: 51,800
Actual variable overhead incurred: $475,000
Actual fixed overhead incurred: $790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours
Rich's fixed-overhead budget variance is:

• A) $9,900U.
• B) $9,900F.
• C) $28,800U.
• D) $28,800F.
• E) None of the other answers are correct.

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Definitions:

Genetic Predisposition

The increased likelihood of developing a particular disease or trait based on a person's genetic makeup.

History of Trauma

Refers to the personal and collective experiences and emotional responses to deeply distressing or disturbing events in an individual's or group's past.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships.

Negative Emotional Reactions

Refers to undesirable feelings or emotions that result from certain experiences or thoughts.