Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units:
Overhead flexible budget:
Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A)$53,900 unfavorable
B)$53,900 favorable
C)$18,200 unfavorable
D)$18,200 favorable

Question

Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units:
Overhead flexible budget:
 Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A)$53,900 unfavorable 
B)$53,900 favorable 
C)$18,200 unfavorable 
D)$18,200 favorable

Quizplus · Accepted Answer

The Answer of Litchfield Industries gathered the following information for the month ended June 30: The static budget volume is 3000 units:
Overhead flexible budget:
 Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A)$53,900 unfavorable 
B)$53,900 favorable 
C)$18,200 unfavorable 
D)$18,200 favorable

Litchfield Industries Gathered the Following Information for the Month Ended