Solved

Enberg Company, Which Applies Overhead to Production on the Basis

Question 4

Multiple Choice

Enberg 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 Enberg estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be:


A) $10,400 favorable.
B) $10,400 unfavorable.
C) $11,000 favorable.
D) $11,000 unfavorable.
E) None of the other answers are correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions