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Irina18 [472]
2 years ago
5

Actual units produced: 13,000 Actual fixed overhead incurred: $742,000 Standard fixed overhead rate: $15 per hour Budgeted fixed

overhead: $720,000 Planned level of machine-hour activity: 48,000 If Auditory estimates four hours to manufacture a completed unit, the company's fixed-overhead budget variance would be:
1. $60,000 unfavorable.
2. $22,000 unfavorable.
3. $60,000 favorable.
4. None of the answers is correct.
5. $22,000 favorable.
Business
1 answer:
valentinak56 [21]2 years ago
3 0

Answer:

 <u>$</u><u> 22,000</u> unfavourable

Explanation:

<em>The fixed expenditure budget variance is the difference between between the actual expenditure and the budgeted expenditure</em>

<em>Fixed overhead expenditure variance =</em>

Budgeted expenditure     =   $720,000

Actual expenditure          =      <u>$742,000</u>

Expenditure variance               <u>$</u><u> 22,000</u> unfavourable

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