Question

Bellingham Company produced 5,100 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.55 per direct labor hour at 16,650 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

$_________

Answer 1

Answer

• Correct Answer = $ 3060 Favourable
  Please enter FAVOURABLE VARIANCE as a NEGATIVE NUMBER.

--Working

Fixed Overhead Production Volume Variance
(	Standard Fixed Overhead or Fixed Overhead absorbed = 5100 units x 3.5 std hrs x $ 2.55	-	Budgeted Fixed Overhead = 16650 hrs x $ 2.55	)
(	$                      45,517.50	-	$            42,457.50	)
	3060
	Variance		$              3,060.00			Favourable-F