Reference no: EM132610311
Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs). The following data pertain to last month's operations:
Budgeted Fixed Overhead Costs $5,000
Actual Fixed Overhead Costs $5,000
Standard Hours Allowed for Output 2,400 DLHs
Predetermined Overhead Rate ($2 variable + $3 fixed) $5 per DLH
Problem 1: What was the fixed overhead budget variance?
Option A) $500 favourable.
Option B) $500 unfavourable.
Option C) $1,700 unfavourable.
Option D) $2,200 unfavourable.
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