DBC Company Applies Fixed Overhead at $8 Per Machine Hour

question 15

Multiple Choice

DBC Company applies fixed overhead at $8 per machine hour. During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000. Budgeted fixed overhead was $80 000. Which of the following is the best description of the items used to calculate the volume variance?

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Definitions:

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Dollar

A unit of currency used in various countries, most notably the United States, identified as a standard monetary unit for transactions.

Domestic Brands

Brands that originate from and are marketed within a country's borders, often tailored to local tastes, culture, and preferences.

Foreign Currencies

Currencies used in international trade and investment, different from the domestic currency of a particular country.