Daub, Inc. gathered the following information for the month ended March 31, 2009:
$$\begin{array} { | l | c | c | c | }
\hline \text { The static budget volume is 4,500 units: } & & & \
\hline \text { Overhead flexible budget: } & & & \
\hline \text { Number of units } & 4,000 & 4,500 & 5,000 \
\hline \text { Standard machine hours } & 12,000 & 13,500 & 15,000 \
\hline \text { Budgeted overhead costs: } & & & \
\hline \text { Variable } & \$ 24,000 & \$ 27,000 & \$ 30,000 \
\hline \text { Fixed } & \$ 33,750 & \$ 33,750 & \$ 33,750 \
\hline
\end{array}$$ Actual production was 5,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours. What is the overhead production volume variance?

Question

Daub, Inc. gathered the following information for the month ended March 31, 2009:
$$\begin{array} { | l | c | c | c | } 
\hline \text { The static budget volume is 4,500 units: } & & & \
\hline \text { Overhead flexible budget: } & & & \
\hline \text { Number of units } & 4,000 & 4,500 & 5,000 \
\hline \text { Standard machine hours } & 12,000 & 13,500 & 15,000 \
\hline \text { Budgeted overhead costs: } & & & \
\hline \text { Variable } & \$ 24,000 & \$ 27,000 & \$ 30,000 \
\hline \text { Fixed } & \$ 33,750 & \$ 33,750 & \$ 33,750 \
\hline
\end{array}$$ Actual production was 5,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours. What is the overhead production volume variance?

Quizplus · Accepted Answer

The Answer of Daub, Inc. gathered the following information for the month ended March 31, 2009:
$$\begin{array} { | l | c | c | c | } 
\hline \text { The static budget volume is 4,500 units: } & & & \
\hline \text { Overhead flexible budget: } & & & \
\hline \text { Number of units } & 4,000 & 4,500 & 5,000 \
\hline \text { Standard machine hours } & 12,000 & 13,500 & 15,000 \
\hline \text { Budgeted overhead costs: } & & & \
\hline \text { Variable } & \$ 24,000 & \$ 27,000 & \$ 30,000 \
\hline \text { Fixed } & \$ 33,750 & \$ 33,750 & \$ 33,750 \
\hline
\end{array}$$ Actual production was 5,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours. What is the overhead production volume variance?

Daub, Inc Gathered the Following Information for the Month Ended March