Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance.
A) $18,300 favorable.
B) $18,000 favorable.
C) $18,000 unfavorable.
D) $18,300 unfavorable.
E) $14,300 unfavorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance. 
A) $18,300 favorable. 
B) $18,000 favorable. 
C) $18,000 unfavorable. 
D) $18,300 unfavorable. 
E) $14,300 unfavorable.

Quizplus · Accepted Answer

Actual fixed overhead $338,000 − Applied (40,000 × $8.00 = $320,000) = $18,000 unfavorable.

Fletcher Company Collected the Following Data Regarding Production of One