Fixed overhead was budgeted at $85,000,and 10,000 direct labour hours were budgeted.Suppose the fixed overhead volume variance was $5,000 unfavourable and the fixed overhead spending variance was $1,200 favourable.What would be the fixed overhead applied?
A)$80,000
B)$82,000
C)$82,800
D)$90,000

Question

Quizplus · Accepted Answer

The fixed overhead applied is calculated by subtracting the volume variance from the budgeted fixed overhead: $85,000 - $5,000 = $80,000.

Fixed Overhead Was Budgeted at $85,000,and 10,000 Direct Labour Hours