Bowen has established the following with regard to fixed overheads for the past month:
|
Actual costs incurred Don't use plagiarized sources. Get Your Custom Essay on
bowen has established the following with regard to fixed overheads for the past mont 611423
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|
£132 400 |
|
Actual units produced |
5000 units |
|
Actual labour hours worked |
9750 hours |
|
Budgeted costs |
£135 000 |
|
Budgeted units of production |
4500 units |
|
Budgeted labour hours |
9000 hours |
Overheads are absorbed on a labour hour basis.
What was the fixed overhead capacity variance?
|
A |
£750 favourable |
|
B |
£11 250 favourable |
|
C |
£22 500 favourable |
|
D |
£11 250 adverse. |
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