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31 July, 10:42

Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September $53,400 $90,000 The fixed-overhead budgeted cost-allocation rate (BR) $50.00 per machine-hour. Standard quantity per 1 unit (SQ) (1,800m/h: 60,000) = 0.03m/h What is the fixed overhead production-volume variance? A. $9,000 F B. $81,000 U C. $81,000F D. $9,000 U

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  1. 31 July, 11:10
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    The fixed overhead production-volume variance is $9,000 U

    Explanation:

    In this question, we are tasked with calculating the fixed overhead production-volume variance.

    We start by calculating the fixed overhead applied to production.

    mathematically that is equal to : 54,000 * 0.03 * 50 = 81,000

    The budgeted fixed overhead = 90,000

    Mathematically,

    Fixed overhead production-volume variance = Budgeted fixed overhead - fixed overhead applied to production = 90,000 - 81,000 = $9,000 U
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Home » Business » Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September $53,400 $90,000 The fixed-overhead budgeted cost-allocation rate (BR) $50.00 per machine-hour.
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