bowen has established the following with regard to fixed overheads for the past mont 611423

Bowen has established the following with regard to fixed overheads for the past month:

Actual costs incurred

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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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