A factory uses a standard costing system and budgeted $50,000 of fixed overhead based on 25,000
machine hours, and production of 10,000 units. During the period, the factory actually produced
12,000 units and incurred 29,000 machine hours. What is the fixed overhead efficiency variance?
b. $2,000 favorable.
c. $2,000 unfavorable.
d. $8,000 favorable
Answer is 0
There is no such thing as fixed overhead efficiency variance
The correct answer is A
There is nothing called fixed overhead variance, it's called production volume variance
Therefore, the correct answer is zero
Hi, the answer will be $0 as there is no fixed overhead efficiency variance.
Finally I saw same answer which is 0.
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