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What was the fixed production overhead capacity variance

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Question - A manufacturing company operates a standard absorption coasting system. Last month 25,000 production hours were budgeted and the budgeted fixed production cost was $125,000. Last month the actual hours worked were 24,000 and standard hours for actual production were 27,000.

What was the fixed production overhead capacity variance for last month?

A. $5,000 Adverse

B. $5,000 Favorable

C. $10,000 Adverse

D. $10,000 Favorable

Reference no: EM132214785

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