CPA Canada Core 2 Practice Questions - CPA PEP Core 2 Management Accounting, Planning And Control Exam

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A company budgeted 10,000 units but produced 9,000. Budgeted fixed manufacturing overhead was $120,000. Using a denominator of 10,000 budgeted units, what is the fixed overhead production-volume variance?

$$12,000 unfavourable $$12,000 favourable $$120,000 unfavourable Zero

Correct Answer:

$$12,000 unfavourable

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