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

Question

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A)
Total fixed overhead variance = Fixed overhead cost variance + Fixed overhead volume variance
 11ea86ed_2b4b_07cd_8b27_0d124bf0de30_TB3056_00 Note:
Fixed overhead cost variance = Actual fixed overhead - Budgeted fixed overhead
 11ea86ed_2b4b_07ce_8b27_21efd1b50a97_TB3056_00 Overhead allocated to production = Standard overhead allocation rate × Standard quantity of the allocation base allowed for actual output
 11ea86ed_2b4b_07cf_8b27_83bac6644642_TB3056_00 Fixed overhead volume variance = Budgeted fixed overhead - Allocated fixed overhead
 11ea86ed_2b4b_2ee0_8b27_dd2353d2481a_TB3056_00

Wave Fashions Uses Standard Costs for Its Manufacturing Division