Theory Enterprises Uses a Standard Cost System and Prepared the Following

Multiple Choice

Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000.Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The fixed-overhead budget and volume variances for Theory are:

A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E