BCD allocates £6 of fixed overhead to each product it produces. Fixed overhead is allocated to products on the basis that monthly production at the company will be 2,500 units of product. Actual production for August was 2,000 units. Actual fixed overhead costs in August totalled up to £14,800. What is the fixed overhead variance for August?
A) £200 Favourable
B) £2,800 Unfavourable
C) £3,000 Unfavourable
D) £3,000 Favourable

Question

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The Answer of BCD allocates £6 of fixed overhead to each product it produces. Fixed overhead is allocated to products on the basis that monthly production at the company will be 2,500 units of product. Actual production for August was 2,000 units. Actual fixed overhead costs in August totalled up to £14,800. What is the fixed overhead variance for August?
A) £200 Favourable
B) £2,800 Unfavourable
C) £3,000 Unfavourable
D) £3,000 Favourable

BCD Allocates £6 of Fixed Overhead to Each Product It