An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period:
-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

Question

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:  The following data pertain to operations for the most recent period: 
-What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

Quizplus · Accepted Answer

The fixed manufacturing overhead volume variance is calculated as follows:
Actual fixed manufacturing overhead – Budgeted fixed manufacturing overhead based on standard DLHs
= $97,755 – ($50,040 + $48,210)
= $97,755 – $98,250
= $495 U (rounded to nearest dollar)
Therefore, the correct answer is C.

An Outdoor Barbecue Grill Manufacturer Has a Standard Costing System