Accounting · Variance Analysis
A company uses a standard absorption costing system. Last month budgeted production was 8,000 units and the standard fixed production overhead cost was $15 per unit. Actual production last month was 8,500 units and the actual fixed production overhead cost was $17 per unit. What was the total adverse fixed production overhead variance for last month?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$24,500
- 2$17,000✓
- 3$16,000
- 4$7,500
Correct answer
$17,000
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