Meridian Fashions Uses Standard Costs for Their Manufacturing Division A) $36,000 F
B) $36,000 U
C) $8000 F
D)

Meridian Fashions uses standard costs for their manufacturing division.The allocation base for overhead costs is direct labor hours.From the following data,calculate the fixed overhead cost variance. $$\begin{array} { | l | l | } \hline \text { Actual fixed overhead } & \$ 32,000 \\\hline \text { Budgeted fixed overhead } & \$ 24,000 \\\hline \text { Standard overhead allocation rate } & \$ 8 \\\hline \text { Standard direct labor hours per unit } & 3 \text { DLHr } \\\hline \text { Actual output } & 2500 \text { units } \\\hline\end{array}$$

A) $36,000 F
B) $36,000 U
C) $8000 F
D) $8000 U