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Leek Company Predicted That the Fixed Overhead Would Be $200,000

Question 128

Multiple Choice

Leek Company predicted that the fixed overhead would be $200,000 in April 2015.Production amounted to 60,000 actual and 50,000 budgeted decks of cards.Each deck takes approximately 0.20 machine hours to produce.The actual overhead costs per machine hour are $25.What is the production-volume variance?


A) $40,000 unfavourable
B) $40,000 favourable
C) $150,000 unfavourable
D) $150,000 favourable
E) $0

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