General Mtg. Co. budgeted fixed overhead costs of $25,000 per quarter and 1,000 units per quarter in its normal absorption costing system. Any volume variance is carried forward and closed at year end. The company experienced the following activity: Quarter Units Produced Units Sold
1 900 600
2 1,200 1,000
3 1,400 1,200
4 1,000 1,500
The volume variance for the year was:
A) -0-
B) Favourable
C) Unfavourable
D) Cannot be determined
Correct Answer:
Verified
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II
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