Fixed overhead was budgeted at $250,000, and 25,000 direct labour hours were budgeted. Suppose the fixed overhead volume variance was $10,000 favourable and the fixed overhead spending variance was $6,000 unfavourable. How much fixed overhead was applied?
A) $194,000
B) $202,000
C) $206,000
D) $260,000

Question

Quizplus · Accepted Answer

The Answer of Fixed overhead was budgeted at $250,000, and 25,000 direct labour hours were budgeted. Suppose the fixed overhead volume variance was $10,000 favourable and the fixed overhead spending variance was $6,000 unfavourable. How much fixed overhead was applied?
A) $194,000
B) $202,000
C) $206,000
D) $260,000

Fixed Overhead Was Budgeted at $250,000, and 25,000 Direct Labour