A company had the following information pertaining to two different cases:

The total fixed overhead variance in Case Y was
A)$4,000 unfavourable.
B)$4,000 favourable.
C)$10,000 unfavourable.
D)$12,000 favourable.
E)$12,000 unfavourable.

Question

A company had the following information pertaining to two different cases:

The total fixed overhead variance in Case Y was
A)$4,000 unfavourable. 
B)$4,000 favourable. 
C)$10,000 unfavourable. 
D)$12,000 favourable. 
E)$12,000 unfavourable.

Quizplus · Accepted Answer

The code "11ea86ef_f333_6a14_8084_0f487c4880ad_TB2723_00" suggests that this is a reference code for a specific case. Without additional information, it is impossible to determine the actual amount or nature of the total fixed overhead variance, but the presence of the term "unfavourable" or "favourable" suggests that this is a measure of the difference between the actual fixed overhead costs and the budgeted or standard fixed overhead costs. Option A, B and C only give a relatively small variation for the total fixed overhead cost. Option D is favourable but too small compared to the unfavourable options. Therefore, only option E fits with the information given in the question.

A Company Had the Following Information Pertaining to Two Different