70. A company uses a standard absorption costing system. Last month budgeted production was
8,000 units and the standard fixed production overhead cost was 15 per unit
. Actual production
last month was 8,500 units and the actual fixed production overhead cost was 17 per unit.
What was the total adverse fixed production overhead variance for last month?
(a) 7,500
(b) * 16,000
17,000
(d) 24,500
Answers
Answer:
a company..,..................................for last month
Explanation:
(D) 24,500. . .....
Answer:
The correct answer is option (C) 17000.
Explanation:
Given,
Last month budgeted production = 8000 units
Standard fixed production overhead cost = 15 per unit
Actual production last month = 8500 units
Actual fixed production overhead cost = 17 per unit
Solution,
8500 units should have cost = 8500 × 15
= 127500
But did actual cost = 8500 × 17
= 144500
Therefore, The total adverse fixed production overhead variance for last month = 144500 - 127500
= 17000
Answer = 17000
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