question archive Bat Company's flexible budget for the units manufactured in May shows $15,610 of total factory overhead; this output level represents 70% of available capacity
Bat Company's flexible budget for the units manufactured in May shows $15,610 of total factory overhead; this output level represents 70% of available capacity
Subject:AccountingPrice: Bought3
Bat Company's flexible budget for the units manufactured in May shows $15,610 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 5,940 DLHs, which represents 90% of available capacity. The company used 5,000 DLHs and incurred $16,400 of total factory overhead cost during May, including $6,000 of fixed factory overhead.
What is the fixed overhead production-volume variance (to the nearest whole dollar) for Bat Company in May? (Round your intermediate calculation to 2 decimal places; Round your final answer to zero decimal places.) PLEASE SHOW ALL WORK AND STEPS. THANK YOU
Multiple Choice
A. $1,256 unfavorable.
B. $776 unfavorable.
C. $576 unfavorable.
D. $1,756 unfavorable.
E. $1,076 unfavorable.
