St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000, and actual variable overhead was $170,000. Actual production was 11,700 units.
-The fixed factory overhead volume variance is
a.$9,000 favorable
b.$9,000 unfavorable
c.$5,500 favorable
d.$5,500 unfavorable

Question

St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000, and actual variable overhead was $170,000. Actual production was 11,700 units.​
-The fixed factory overhead volume variance is
a.$9,000 favorable
b.$9,000 unfavorable
c.$5,500 favorable
d.$5,500 unfavorable

Quizplus · Accepted Answer

The Answer of St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000, and actual variable overhead was $170,000. Actual production was 11,700 units.​
-The fixed factory overhead volume variance is
a.$9,000 favorable
b.$9,000 unfavorable
c.$5,500 favorable
d.$5,500 unfavorable

St Augustine Corporation Originally Budgeted for $360,000 of Fixed Overhead