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Frekko Company Collected the Following Information -Refer to the Figure

Question 31

Multiple Choice

Frekko Company collected the following information:
 Standard costs per unit:  Variable overhead 4 machine hours @$6 per machine hour  Fixed overhead 4 machine hours @$10 per machine hour \begin{array}{lr}\text { Standard costs per unit: }\\\text { Variable overhead } & 4 \text { machine hours @\$6 per machine hour } \\\text { Fixed overhead } & 4 \text { machine hours } @ \$ 10 \text { per machine hour }\end{array}


 Actual output 20,000 units  Denominator (normal capacity)  output 21,000 units  Actual machine hours 79,000 machine hours  Actual variable overhead cost $540,000 Actual fixed overhead cost $810,000\begin{array}{l}\text { Actual output }&20,000 \text { units } \\\text { Denominator (normal capacity) output } & 21,000 \text { units } \\\text { Actual machine hours } & 79,000 \text { machine hours } \\\text { Actual variable overhead cost } & \$ 540,000 \\\text { Actual fixed overhead cost } & \$ 810,000\end{array}
-Refer to the figure.Using the three variance method,what is the budget variance?


A) $6,000 (F)
B) $6,000 (U)
C) $24,000 (F)
D) $24,000 (U)

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