Question 1
Radon Corporation manufactured 37,500 units during March. The following fixed overhead data pertain to March:
Production | 37,500 units | 34,000 units |
Machine-hours | 10,375 hours | 10,200 hours |
Fixed overhead costs for March | $213,200 | $204,000 |
What is the fixed overhead production-volume variance?
◦ $9,200.00 unfavorable
◦ $21,000.00 favorable
◦ $21,000.00 unfavorable
◦ $9,200.00 favorable
Question 2
Radon Corporation manufactured 38,100 units during March. The following fixed overhead data pertain to March:
Production | 38,100 units | 35,000 units |
Machine-hours | 14,200 hours | 14,000 hours |
Fixed overhead costs for March | $289,100 | $280,000 |
What is the fixed overhead spending variance?
◦ $24,800.00 favorable
◦ $9,100.00 favorable
◦ $9,100.00 unfavorable
◦ $24,800.00 unfavorable