Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted.If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be
A) $208,000.
B) $206,000.
C) $202,000.
D) $194,000.

Question

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
$200,000 + $8,000 = $208,000

Fixed Overhead Was Budgeted at $200,000, and 25,000 Direct Labor