Robert Inc. uses the standard costing method. The company's main product is a fine-quality headphones that normally
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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. | $3,675 (U) | |
| c. | $5,800 (U) | |
| d. | $925 (U) |
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