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Patridge Company Uses a Standard Cost System in Which It

Question 134

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Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours.The information below is taken from the company's flexible budget for manufacturing overhead: Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours.The information below is taken from the company's flexible budget for manufacturing overhead: During the year,the company operated at exactly 80% of capacity,but applied manufacturing overhead to products based on the 90% level.The company's fixed overhead volume variance for the year was: A) $6,000 unfavourable. B) $6,000 favourable. C) $12,000 unfavourable. D) $12,000 favourable. During the year,the company operated at exactly 80% of capacity,but applied manufacturing overhead to products based on the 90% level.The company's fixed overhead volume variance for the year was:


A) $6,000 unfavourable.
B) $6,000 favourable.
C) $12,000 unfavourable.
D) $12,000 favourable.

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