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DBC Company Applies Fixed Overhead at $8 Per Machine Hour

Question 14

Multiple Choice

DBC Company applies fixed overhead at $8 per machine hour.During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000.Budgeted fixed overhead was $80 000.Which of the following is the best description of the items used to calculate the volume variance?
Budgeted FOH
Applied FOH
Actual FOH


A) $80 000
$88 000
Ignore
B) $88 000
$88 000
Ignore
C) $88 000
$75 000
Ignore
D) ignore
$88 000
$75 000

Correct Answer:

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