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Use this information for Bonny Company to answer the question that follows. The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.74 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs Total variable overhead cost, $17,900 Total fixed overhead cost, $8,000 The fixed factory overhead volume variance is Oa. so Ob. $962 unfavorable Oc. $770 favorable Od. $770 unfavorable

Use this information for Bonny Company to answer the question that follows. The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.74 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs Total variable overhead cost, $17,900 Total fixed overhead cost, $8,000 The fixed factory overhead volume variance is Oa. so Ob. $962 unfavorable Oc. $770 favorable Od. $770 unfavorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use this information for Bonny Company to answer the question that follows. The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.74 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs Total variable overhead cost, $17,900 Total fixed overhead cost, $8,000 The fixed factory overhead volume variance is Oa, so Ob. S962 unfavorable Oc. $770 favorable Od. $770 unfavorable
Transcribed Image Text:Use this information for Bonny Company to answer the question that follows. The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.74 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs Total variable overhead cost, $17,900 Total fixed overhead cost, $8,000 The fixed factory overhead volume variance is Oa, so Ob. S962 unfavorable Oc. $770 favorable Od. $770 unfavorable
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