Multiple Choice
Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units:
Overhead flexible budget:
Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A) $42,250 unfavorable
B) $42,250 favorable
C) $36,400 unfavorable
D) $36,400 favorable
Correct Answer:
Verified
Correct Answer:
Verified
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