Match Point, Inc.has the following overhead standards: Variable overhead: 4 hours at $8 per hour Fixed overhead: 4 hours at $10 per hour The standards were based on a planned activity of 20,000 machine hours when 5,000 units were scheduled for production.Actual data follow. Variable overhead incurred: $167,750 Fixed overhead incurred: $210,000 Machine hours worked: 19,800 Actual units produced: 5,100 Match Point's ﬁxed-overhead budget variance is:
A)$6,000 unfavorable.
B)$7,000 unfavorable.
C)$10,000 unfavorable.
D)$12,000 unfavorable.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

Fixed overhead budget variance = (Actual fixed overhead - Budgeted fixed overhead)= ($210,000 - $200,000)= $10,000 unfavorable