Fleming Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead$190,485 Budgeted production (a) 15,000units Standard hours per unit (b) 1.70labor-hours Budgeted hours (a) × (b) 25,500labor-hours Actual production (a) 10,000units Standard hours per unit (b) 1.70labor-hours Standard hours allowed for the actual production (a) × (b) 17,000labor-hours Actual fixed manufacturing overhead$172,485 Actual hours 16,000labor-hours ?The fixed overhead volume
variance is:
A. $63,495 F
B. $63,495 U
C. $45,495 F
D. $45,495 U
Answer: B
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