Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance.



A) $18,300 favorable.

B) $18,000 favorable.

C) $18,000 unfavorable.

D) $18,300 unfavorable.

E) $14,300 unfavorable.


C) $18,000 unfavorable.
Explanation: Actual fixed overhead $338,000 - Applied (40,000 * $8.00 = $320,000) = $18,000 unfavorable.

Business

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