The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour $ 35,000 $ 14,000 $ 10,000 8,000 4,900 5,600 $3 Under a three-variance breakdown (decomposition) of the total factory overhead variance, the fixed factory overhead production-volume variance (to the nearest whole dollar) is: (Do not round your intermediate calculations; Round your final answer to zero decimal places.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost
to outputs:
Actual total factory overhead cost incurred
Actual fixed overhead cost incurred
Budgeted fixed overhead cost
Actual machine hours
Standard machine hours allowed for the units manufactured
Denominator volume-machine hours
Standard variable overhead rate per machine hour
Under a three-variance breakdown (decomposition) of the total factory overhead variance, the fixed factory overhead production-volume variance (to the
nearest whole dollar) is: (Do not round your intermediate calculations; Round your final answer to zero decimal places.)
Multiple Choice
$1,950 favorable.
$ 35,000
$ 14,000
$ 10,000
8,000
4,900
5,600
$3
$250 favorable.
Transcribed Image Text:The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour Under a three-variance breakdown (decomposition) of the total factory overhead variance, the fixed factory overhead production-volume variance (to the nearest whole dollar) is: (Do not round your intermediate calculations; Round your final answer to zero decimal places.) Multiple Choice $1,950 favorable. $ 35,000 $ 14,000 $ 10,000 8,000 4,900 5,600 $3 $250 favorable.
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