Family Fashions uses standard costs for its manufacturing division.The allocation base for overhead costs is direct labor hours.From the following data,calculate the fixed overhead volume variance.

Question

Quizplus · Accepted Answer

C)
Fixed overhead volume variance = Budgeted fixed overhead - Allocated fixed overhead
 11ea86ed_2b4a_929a_8b27_53021226d3c5_TB3056_00 Note:
Overhead allocated to production = Standard overhead allocation rate × Standard quantity of the allocation base allowed for actual output
 11ea86ed_2b4a_929b_8b27_6fc781372314_TB3056_00

Family Fashions Uses Standard Costs for Its Manufacturing Division