The Big Company's expected production volume was 36,000 units at 9,000 hours of labor. The fixed overhead rate is KD 3 per hour at 36,000 units. Actual fixed overhead was KD 26,000 for 32,000 units of production. Which of the following is correct? Select one: a. Cost variance, KD 1,000 U; volume variance, KD 3,000 U. b. Cost variance, KD 1,000 U; volume variance, KD 3,000 F. c. Cost variance, KD 3,000 F; volume variance, KD 2,000 U. d. Cost variance, KD 1,000 F; volume variance, KD 3,000 U.

The Big Company's expected production volume was 36,000 units at 9,000 hours of labor. The fixed overhead rate is KD 3 per hour at 36,000 units. Actual fixed overhead was KD 26,000 for 32,000 units of production. Which of the following is correct? Select one: a. Cost variance, KD 1,000 U; volume variance, KD 3,000 U. b. Cost variance, KD 1,000 U; volume variance, KD 3,000 F. c. Cost variance, KD 3,000 F; volume variance, KD 2,000 U. d. Cost variance, KD 1,000 F; volume variance, KD 3,000 U.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject :- Accounting
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