1 PM/Remaining: 15 min CALCULATOR Multiple Choice Question 144 X Your answer is

Question

1 PM/Remaining: 15 min CALCULATOR Multiple Choice Question 144 X Your answer is incorrect. Try again. R&N; produced 2,500 music boxes using 4,800 direct labor hours. Actual fixed overhead for the year was $23,000. What is the company's foed MESSAGE MY INSTRUCTOR FULL SCREENNI Manufacturing produces music boxes. The fired overhead rate ls ss 1o per drect labor h andas for the overhead spending varlanc $460 favorable $460 unfavorable $1,480 favorable $1,480 unfavorable LINK TO TEXT FORLAT Question Attempts: 1 of 2 used

Explanation / Answer

Fixed overhead varince = Budgeted overhead - Actual overhead.

if actual overhead is more than budgeted overhead variance will be Favourable. else variance will be Unfavourable

Budgeted fixed overhead rate per hour $5.10 Budgeted direct labour hours        4,600 Budgeted fixed overhead (4,600*$5.10) $ 23,460 Actual fixed overhead $ 23,000 Fixed overhead variance ($23,460-$23,000) $460 F

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