Bolt Industries gathered the following information for the month ended March 31: The static budget volume is 4,500 units:
Overhead flexible budget:
Actual production was 10,000 units.Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs.Actual machine hours worked were 14,100 hours.
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What is the production volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A) $41,250 unfavorable
B) $41,250 favorable
C) $33,000 unfavorable
D) $33,000 favorable
Correct Answer:
Verified
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