Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 25 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead volume variance in this period?
A)$18,075 unfavorable
B)$32,340 unfavorable
C)$18,075 favorable
D)$32,340 favorable

Question

Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 25 slides. Budgeted and actual production data follows:  What is the fixed manufacturing overhead volume variance in this period?
A)$18,075 unfavorable 
B)$32,340 unfavorable 
C)$18,075 favorable 
D)$32,340 favorable

Quizplus · Accepted Answer

The Answer of Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 25 slides. Budgeted and actual production data follows:  What is the fixed manufacturing overhead volume variance in this period?
A)$18,075 unfavorable 
B)$32,340 unfavorable 
C)$18,075 favorable 
D)$32,340 favorable

Monty Manufacturing Builds Playground Equipment That It Sells to Elementary