Exter Manufacturing experienced the following activity over the last four years: Year Units Produced Units Sold
1 800 600
2 1,100 800
3 1,200 1,100
4 1,000 1,400
The firm's estimated fixed overhead allocation rate was unchanged over the 4 years at $200 per unit, based on budgeted fixed overhead of $200,000 and 1,000 units of output. The volume variance is closed to the cost of goods sold each year. Exter maintains an absorption costing system.
The volume variance for Year 2 is:
A)$40,000 Unfavourable
B)$60,000 Favourable
C)$100,000 Unfavourable
D)$20,000 Favourable

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The Answer of Exter Manufacturing experienced the following activity over the last four years: Year Units Produced Units Sold
1 800 600
2 1,100 800
3 1,200 1,100
4 1,000 1,400
The firm's estimated fixed overhead allocation rate was unchanged over the 4 years at $200 per unit, based on budgeted fixed overhead of $200,000 and 1,000 units of output. The volume variance is closed to the cost of goods sold each year. Exter maintains an absorption costing system.
The volume variance for Year 2 is:
A)$40,000 Unfavourable
B)$60,000 Favourable
C)$100,000 Unfavourable
D)$20,000 Favourable

Exter Manufacturing Experienced the Following Activity Over the Last Four