CMA Study Group

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable

Hi, the answer will be $0 as there is no fixed overhead efficiency variance.

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?

a. $0.

b. $2,000 favorable.

c. $2,000 unfavorable.

d. $8,000 favorable