(Appendix 10A) Rainbolt Incorporated Makes a Single Product--An Electrical Motor

Multiple Choice

(Appendix 10A) Rainbolt Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The fixed overhead budget variance is:

A) $20,000 U
B) $400 U
C) $20,000 F
D) $400 F