Underfoot Products uses standard costing.The following information about overhead was generated during May: $$\begin{array} { l l }
\text { Standard variable overhead rate } & \$ 2 \text { per machine how } \
\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \
\text { Actual variable overhead costs } & \$ 390,000 \
\text { Actual fixed cverhead costs } & \$ 175,000 \
\text { Budgeted fixed cverhead costs } & \$ 190,000 \
\text { Standard machine hours per unit produced } & 10 \
\text { Good units produced } & 18,000 \
\text { Actual machine hours } & 200,000
\end{array}$$
Compute the fixed overhead volume variance.

Question

Underfoot Products uses standard costing.The following information about overhead was generated during May: $$\begin{array} { l l } 
\text { Standard variable overhead rate } & \$ 2 \text { per machine how } \
\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \
\text { Actual variable overhead costs } & \$ 390,000 \
\text { Actual fixed cverhead costs } & \$ 175,000 \
\text { Budgeted fixed cverhead costs } & \$ 190,000 \
\text { Standard machine hours per unit produced } & 10 \
\text { Good units produced } & 18,000 \
\text { Actual machine hours } & 200,000
\end{array}$$ 
Compute the fixed overhead volume variance.

Quizplus · Accepted Answer

The Answer of Underfoot Products uses standard costing.The following information about overhead was generated during May: $$\begin{array} { l l } 
\text { Standard variable overhead rate } & \$ 2 \text { per machine how } \
\text { Standard fixed overhead rate } & \$ 1 \text { per machine hour } \
\text { Actual variable overhead costs } & \$ 390,000 \
\text { Actual fixed cverhead costs } & \$ 175,000 \
\text { Budgeted fixed cverhead costs } & \$ 190,000 \
\text { Standard machine hours per unit produced } & 10 \
\text { Good units produced } & 18,000 \
\text { Actual machine hours } & 200,000
\end{array}$$ 
Compute the fixed overhead volume variance.

Underfoot Products Uses Standard Costing Compute the Fixed Overhead Volume Variance