Factory Overhead Volume Variance
Dvorak Company
produced 4,200 units of product that required 4 standard hours per
unit. The standard fixed overhead cost per unit is $2.95 per hour
at 15,500 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.
$ Favorable
Fixed factory overhead volume variance = (Standard hours - Actual hours) * standard overhead rate
= (4200*4 - 15,500)*2.95
= 3835 Fav
Enter as - 3935
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product that required 6.5 standard hours per unit. The standard
fixed overhead cost per unit is $2.60 per hour at 11,300 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.
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