Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were: The fixed overhead production volume variance was
A) $15,000 F
B) $20,000 U
C) $10,000 F
D) $10,000 U

Question

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were:  The fixed overhead production volume variance was
A) $15,000 F 
B) $20,000 U 
C) $10,000 F 
D) $10,000 U

Quizplus · Accepted Answer

The Answer of Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labor hour. The overhead rate is based on 10,000 hours. Actual results were:  The fixed overhead production volume variance was
A) $15,000 F 
B) $20,000 U 
C) $10,000 F 
D) $10,000 U

Burkett Company Uses a Standard Cost System