The following information is available for Baxter Manufacturing for April:    Actual machine hours 840 Standard machine hours allowed 900 Denominator activity (machine hours) 1,000 Actual fixed overhead costs$3,800 Budgeted fixed overhead costs$4,000 Predetermined overhead rate ($1 variable + $4 fixed)$5 Is the production volume variance for April favorable or unfavorable?

A. Favorable.
B. Unfavorable.


Answer: B

Business

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