Cabot Company collected the following data regarding production of one of its products.Compute the fixed overhead cost variance.
A)$18,300 favorable.
B)$18,000 favorable.
C)$18,000 unfavorable.
D)$18,300 unfavorable.
E)$14,300 unfavorable.

Question

Cabot Company collected the following data regarding production of one of its products.Compute the fixed overhead cost variance. 
A)$18,300 favorable. 
B)$18,000 favorable. 
C)$18,000 unfavorable. 
D)$18,300 unfavorable. 
E)$14,300 unfavorable.

Quizplus · Accepted Answer

Actual fixed overhead costs = $338,000; Applied = 40,000 * $8.00 = $320,000
Fixed overhead cost variance = $18,000 unfavorable

Cabot Company Collected the Following Data Regarding Production of One