Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: $$\begin{array} { l r r }
\text { Standard direct labour hours } & 9,000 \
\text { Actual direct labour hours } & 10,000 \
\text { Fixed overhead } & \$ 190,000 & \
\text { Variable overhead } & \$ 185,000
\end{array}$$ 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 labour hour. The overhead rate is based on 10,000 hours. Actual results were: $$\begin{array} { l r r } 
\text { Standard direct labour hours } & 9,000 \
\text { Actual direct labour hours } & 10,000 \
\text { Fixed overhead } & \$ 190,000 & \
\text { Variable overhead } & \$ 185,000
\end{array}$$ 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 labour hour. The overhead rate is based on 10,000 hours. Actual results were: $$\begin{array} { l r r } 
\text { Standard direct labour hours } & 9,000 \
\text { Actual direct labour hours } & 10,000 \
\text { Fixed overhead } & \$ 190,000 & \
\text { Variable overhead } & \$ 185,000
\end{array}$$ 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 The Fixed Overhead Production Volume Variance Was: A) $15,000 F

Burkett Company Uses a Standard Cost System The Fixed Overhead Production Volume Variance Was:
A) $15,000 F