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
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TechnoText Inc. bases its fixed overhead rate on its practical capacity of 120,000 units per year. I...
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