Accounting · Variance Analysis
A company operates a standard absorption costing system. The standard fixed production overhead rate is $15 per hour. The following data relate to last month: Actual hours worked: 5,500; Budgeted hours: 5,000; Standard hours for actual production: 4,800. What was the fixed production overhead capacity variance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$10,500 favourable
- 2$10,500 adverse
- 3$7,500 favourable✓
- 4$7,500 adverse
Correct answer
$7,500 favourable
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