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1) TechnoText Inc. bases its fixed overhead rate on its practical capacity of 120,000 units...

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Accounting

1) TechnoText Inc. bases its fixed overhead rate on its practical capacity of 120,000 units per year. It budgeted to produce 100,000 units during Year 1. The budgeted fixed manufacturing overhead is $480,000. The company actually produced 110,000 units and incurred $535,000 in fixed manufacturing overhead costs. Calculate the expected capacity variance.

A) $80,000 favorable

B) $100,000 favorable

C) $80,000 unfavorable

D) $100,000 unfavorable

Creek Co. calculated its fixed overhead spending variance to be $30,000, unfavorable. Its fixed overhead volume variance amounted to $27,000, favorable. Calculate the amount of over- or underapplied fixed manufacturing overhead.

A) $3,000 underapplied

B) $3,000 overapplied

C) $57,000 overapplied

D) $57,000 underapplied

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