Question

Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100

Answer 1

Overhead volume balance= $29,400 unfavorable

Step-by-step explanation:

Giving the following information:

From the following data, calculate the fixed overhead volume variance.

-Actual fixed overhead $40,000

-Budgeted fixed overhead $21,000

-Standard overhead allocation rate $6

-Standard direct labor hours per unit 4 DLHr

-Actual output 2,100.

Overhead volume variance= budgeted fixed overhead - fixed overhead applied= 21,000 - 50,400= 29,400 unfavorable