What was carvelle fixed overhead budget variance

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Reference no: EM132552799

Carvelle Cabinets set the following standard cost per unit for 2008.

Fixed overhead (4 machine hours at $10)               $40

Variable overhead (4 machine hours at $8)            $32

The standards were set based on a capacity of 20 000 machine hours.

During the year, 5 100 units were produced.

Fixed overhead             $205 000

Variable overhead         $165 750

Machine hours worked          19 800

Question 1: What was Carvelle's fixed overhead budget variance?

Select one:

a. $2 000 unfavourable

b. $7 000 unfavourable

c. $5 000 unfavourable

d. $4 000 favourable

Reference no: EM132552799

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