Question：A manufacturing company operates a standard absorption costing system. Last month 25,000 production hours were budgeted and the budgeted fixed production cost was $125,000. Last month the actual hours worked were 24,000 and standard hours for actual production were 27,000.
　　What was the fixed production overhead capacity variance for last month?
　　A $5,000 Adverse
　　B $5,000 Favourable
　　C $10,000 Adverse
　　D $10,000 Favourable
　　(Actual hours – Budgeted hours) * standard rate
　　(24,000 – 25,000)*5 = $5,000 adverse