Robert Inc uses the standard costing method. The company's main product is a fine-quality headphones that normally takes 0.5 hour to produce. Normal annual capacity is 5,000 direct labor hours, and budgeted fixed overhead costs for the year were $8,750. During the year, the company produced and sold 5,800 units. Actual fixed overhead costs were $6,000. Using the information provided for Robert
Inc, compute the fixed overhead cost variance.
A) $2,750 (F)
B) $925 (U)
C) $3,675 (U)
D) $5,800 (U)
B
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