The following data for May has been provided by Mccawley Corporation. The volume variance for May is:
A) $2,070 U
B) $4,140 U
C) $4,140 F
D) $2,070 F

Question

The following data for May has been provided by Mccawley Corporation.  The volume variance for May is:
A) $2,070 U 
B) $4,140 U 
C) $4,140 F 
D) $2,070 F

Quizplus · Accepted Answer

Fixed component of the predetermined overhead rate = $53,820 ÷ 2,600 hours = $20.70 per hour
Volume variance = Fixed component of the predetermined overhead rate × (Denominator hours − Standard hours allowed for the actual output)
= $20.70 per hour × (2,600 hours − 2,800 hours)
= $20.70 per hour × (−200 hours)
= $4,140 F

The Following Data for May Has Been Provided by Mccawley