Question

Radon Corporation manufactured 41 comma 500 units during March. The following fixed overhead data pertain to​ March: Actual Static Budget Production 41 comma 500 units 38 comma 000 units Machineminushours 11 comma 575 hours 11 comma 400 hours Fixed overhead costs for March $ 248 comma 400 $ 239 comma 400 What is the fixed overhead productionminusvolume ​variance?

Answer 1

$22,050 favorable

Step-by-step explanation:

The computation of the fixed overhead product - volume variance is shown below:

Fixed overhead volume variance is

= Actually applied amount - the budgeted amount

= ($239,400 ÷ 38,000 units × $41,500) - ($239,400)

= $261,450 - $239,400

= $22,050 favorable

We simply applied the above formula so that the fixed overhead product - volume variance could come