Match Point, Inc.has the following overhead standards: Variable overhead: 4 hours at $8 per hour Fixed overhead: 4 hours at $10 per hour The standards were based on a planned activity of 20,000 machine hours when 5,000 units were scheduled for production.Actual data follow. Variable overhead incurred: $167,750 Fixed overhead incurred: $210,000 Machine hours worked: 19,800 Actual units produced: 5,100 Match Point's ﬁxed-overhead volume variance is:
A)$4,000 negative.
B)$4,000 positive.
C)$10,000 negative.
D)$10,000 positive.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

Fixed overhead volume variance = (Standard fixed overhead rate * (Actual machine hours - Standard machine hours))= ($10 * (19,800 - 20,000))= ($10 * -200)= -$2,000