Fixed manufacturing overhead was budgeted at $105,000,and 25,000 direct labour hours were budgeted.If the fixed overhead volume variance was $4,000 unfavourable and the fixed overhead spending variance was $1,500 favourable,what would be the fixed manufacturing overhead applied?
A)$101,000
B)$106,500
C)$107,500
D)$109,000

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead applied = Budgeted fixed manufacturing overhead + Fixed overhead volume variance - Fixed overhead spending variance= $105,000 + $4,000 - $1,500= $101,000

Fixed Manufacturing Overhead Was Budgeted at $105,000,and 25,000 Direct Labour