Gina Production Company uses a standard costing system.The following information pertains to the current year:
The overhead rate is based on an activity level of 10,000 hours.Standard cost data for 5,000 units is as follows:

What is the fixed overhead volume variance for Gina Production Company?
A) $1,350 F
B) $3,600 F
C) $4,125 U
D) $1,350 U

Question

Gina Production Company uses a standard costing system.The following information pertains to the current year: 
 The overhead rate is based on an activity level of 10,000 hours.Standard cost data for 5,000 units is as follows:

What is the fixed overhead volume variance for Gina Production Company?
A) $1,350 F 
B) $3,600 F 
C) $4,125 U 
D) $1,350 U

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
$13,500 - [11,000 × (13,500 / 10,000)] = $1,350 F

Gina Production Company Uses a Standard Costing System