Accounting · Variance Analysis
BB Co manufactures a single product, and relevant data for December is as follows: - Production units: Budget = 1,800 units, Actual = 1,900 units - Labour hours: Budget = 9,000 hours, Actual = 9,400 hours - Fixed production overhead: Budget = $36,000, Actual = $39,480 What are the fixed production overhead capacity and efficiency variances for December?
- 1Capacity: $1,600 (F); Efficiency: $400 (A)
- 2Capacity: $1,600 (A); Efficiency: $400 (F)
- 3Capacity: $1,600 (A); Efficiency: $400 (A)
- 4Capacity: $1,600 (F); Efficiency: $400 (F)✓
Correct answer
Capacity: $1,600 (F); Efficiency: $400 (F)
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