DBC Company Applies Fixed Overhead at $8 Per Machine Hour

question 14

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?
Budgeted FOH
Applied FOH
Actual FOH

• A) $80 000
• $88 000
• Ignore
• B) $88 000
• $88 000
• Ignore
• C) $88 000
• $75 000
• Ignore
• D) ignore
• $88 000
• $75 000

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Definitions:

At Least

A term used in probability and statistics indicating a minimum threshold or the smallest number that is significant in a given context.

Roll a Die

Rolling a die is a random act that produces an outcome between 1 and 6, each with an equal probability.

Win the Game

Achieving a higher score or meeting the criteria for victory in a competitive activity.

Independent

Free from outside control or influence, able to function or operate on its own.