Question

A manufacturing company accumulates the following data on fixed overhead: Actual cost incurred: $21,000; Budgeted: $20,000; Applied fixed overhead: $24,000. The fixed overhead volume variance is:

Answer 1

$4,000F

Step-by-step explanation:

Calculation to determine what The fixed overhead volume variance is:

Using this formula

Fixed overhead volume variance= Budgeted - Applied fixed overhead

Let plug in the formula

Fixed overhead volume variance=$20,000-$24,000

Fixed overhead volume variance=$4,000F

Therefore The fixed overhead volume variance is:$4,000F