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:

-The fixed manufacturing overhead volume variance for the period is closest to:

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:

-The fixed manufacturing overhead volume variance for the period is closest to:

Quizplus · Accepted Answer

The fixed manufacturing overhead volume variance is equal to the difference between the budgeted fixed manufacturing overhead and the applied fixed manufacturing overhead. The budgeted fixed manufacturing overhead is $10,000, and the applied fixed manufacturing overhead is $9,022. Therefore, the fixed manufacturing overhead volume variance is $10,000 - $9,022 = $978 F.

An Outdoor Barbecue Grill Manufacturer Has a Standard Costing System