Factory Overhead Volume Variance
Bellingham Company produced 1,900 units of product that required
1.5 standard direct labor hours per unit. The standard fixed
overhead cost per unit is $2.10 per direct labor hour at 3,150
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.
$ Unfavorable
Fixed Overhead Production Volume Variance |
||||||
( |
Standard Fixed Overhead or Fixed Overhead absorbed = 1900 units x 1.5 hours x $ 2.10 |
- |
Budgeted Fixed Overhead = 3150 hours x $ 2.10 |
) |
||
( |
$ 5,985.00 |
- |
$ 6,615.00 |
) |
||
-630 |
||||||
Variance |
630 |
Unfavourable-U |
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