Bolt Industries gathered the following information for the month ended March 31:
The static budget volume is 4,500 units:
Overhead flexible budget:
Actual production was 10,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours.
-What is the production volume variance at Bolt Industries? (Assume the allocation base for fixed overhead costs is machine hours.)
A) $41,250 unfavourable
B) $41,250 favourable
C) $33,000 unfavourable
D) $33,000 favourable
Correct Answer:
Verified
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