Accountancy, asked by unns11salunke, 9 months ago

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

Answered by maina1640
0

Answer:

a company..,..................................for last month

Explanation:

(D) 24,500. . .....

Answered by AncyA
0

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

#SPJ3

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