Question

# Factory Overhead Volume Variance Bellingham Company produced 1,900 units of product that required 1.5 standard direct...

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

• Correct Answer = \$ 630 Unfavourable
 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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