Gina Production Company uses a standard costing system. The following information pertains to 2011: The overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units is as follows:
What is the fixed overhead volume variance for Gina Production Company?
A) $1,350 F
B) $3,600 F
C) $4,125 U
D) $1,350 U

Question

Gina Production Company uses a standard costing system. The following information pertains to 2011:  The overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units is as follows:
 What is the fixed overhead volume variance for Gina Production Company?
A) $1,350 F 
B) $3,600 F 
C) $4,125 U 
D) $1,350 U

Quizplus · Accepted Answer

The Answer of Gina Production Company uses a standard costing system. The following information pertains to 2011:  The overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units is as follows:
 What is the fixed overhead volume variance for Gina Production Company?
A) $1,350 F 
B) $3,600 F 
C) $4,125 U 
D) $1,350 U

Gina Production Company Uses a Standard Costing System