Shamrock Manufacturing budgeted fixed overhead costs of $2.75 per unit at an anticipated production level of 1,350 units.In July Shamrock incurred actual fixed overhead costs of $4,400 and actually produced 1,300 units.
What is Shamrock's fixed overhead volume variance in July?

Question

Quizplus · Accepted Answer

D)
Fixed MOH Volume variance = Budgeted fixed overhead - fixed overhead allocated
$137.50 U = ($2.75 - 1,350)- ($2.75 × 1,300)

Shamrock Manufacturing Budgeted Fixed Overhead Costs of $2