Demonstrate the fixed overhead budget variance is

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Given the following data:

Actual units produced: 12,000

Actual fixed overhead incurred: $747,000

Standard fixed overhead rate: $13 per hour

Budgeted fixed overhead: $720,000

Planned level of machine-hour activity: 55,000

Question 1: the fixed overhead budget variance is:

Option 1: $27,000 favorable.

Option 2: $27,000 unfavorable.

Option 3: $65,000 favorable.

Option 4: $65,000 unfavorable.

Option 5: None of the answers is correct.

Reference no: EM132529379

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