Mathematics · Cost Accounting
A manufacturing company operates a standard absorption costing system. Last month, 25,000 production hours were budgeted and the budgeted fixed production cost was $125,000. If the actual hours worked were 24,000 and standard hours for actual production were 27,000, what was the fixed production overhead capacity variance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$10,000 Favourable
- 2$10,000 Adverse
- 3$5,000 Favourable
- 4$5,000 Adverse✓
Correct answer
$5,000 Adverse
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