Bentz Fashions uses standard costs for its manufacturing division.From the following data,calculate the total fixed overhead variance.

A)$7,650 U
B)$7,650 F
C)$13,500 U
D)$13,500 F

Question

Bentz Fashions uses standard costs for its manufacturing division.From the following data,calculate the total fixed overhead variance.

A)$7,650 U 
B)$7,650 F 
C)$13,500 U 
D)$13,500 F

Quizplus · Accepted Answer

A)Total fixed overhead variance = Fixed overhead cost variance + Fixed overhead volume variance 11ea8a42_4fae_c5e5_8b44_3b87f35545a3_TB5024_00 Note:
Fixed overhead cost variance = Actual fixed overhead - Budgeted fixed overhead 11ea8a42_4fae_c5e6_8b44_21736565198e_TB5024_00 Overhead allocated to production = Standard overhead allocation rate × Standard quantity of the allocation base allowed for actual output 11ea8a42_4fae_c5e7_8b44_0dd87e442b40_TB5024_00 Fixed overhead volume variance = Budgeted fixed overhead - Allocated fixed overhead 11ea8a42_4fae_c5e8_8b44_37e343afef4c_TB5024_00

Bentz Fashions Uses Standard Costs for Its Manufacturing Division