Use this information for Zoyza Company to answer the questions that follow.

The following data are given for Zoyza Company:

Overhead is applied on standard labor hours.

-The fixed factory overhead volume variance is
A) $9,000 favorable
B) $9,000 unfavorable
C) $5,500 favorable
D) $5,500 unfavorable

Question

Use this information for Zoyza Company to answer the questions that follow.
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The following data are given for Zoyza Company:
​
  Overhead is applied on standard labor hours.
​​
-The fixed factory overhead volume variance is
A) $9,000 favorable 
B) $9,000 unfavorable 
C) $5,500 favorable 
D) $5,500 unfavorable

Quizplus · Accepted Answer

Since the question does not provide any information on the actual fixed factory overhead incurred or the standard labor hours worked, we cannot calculate the fixed factory overhead volume variance. However, we can determine the direction (favorable or unfavorable) based on the given choices. Option B states that the fixed factory overhead volume variance is unfavorable, which means that the actual fixed factory overhead incurred is higher than the budgeted fixed factory overhead based on standard labor hours. Therefore, the best choice is B.

Use This Information for Zoyza Company to Answer the Questions