Budgeted output for DuCane Small Engines Inc. was 20,000 engines during February 2012. Budgeted fixed overhead per output unit was $2.50, and 30,000 engines were actually produced. Actual fixed overhead was allocated at $3.00 per engine. What is the production-volume overhead variance?
A) $33,500 favourable
B) $25,000 unfavourable
C) $30,000 favourable
D) $30,000 unfavourable
E) $25,000 favourable
Correct Answer:
Verified
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