Approach Company, Which Applies Overhead to Production on the Basis

Multiple Choice

Approach Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 14,800 Actual fixed overhead incurred: $791,000 Standard fixed overhead rate: $13 per hour Budgeted fixed overhead: $780,000 Planned level of machine-hour activity: 60,000 If Approach estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be:

A) $10,400 negative.
B) $10,400 positive.
C) $11,000 negative.
D) $11,000 positive.
E) None of the answers is correct.