Dairy Delites had the following projected and incurred the following production and cost data shown below:
What is the Fixed-MOH Volume Variance?
A) $136 favorable
B) $136 unfavorable
C) $216 favorable
D) $216 unfavorable

Question

Dairy Delites had the following projected and incurred the following production and cost data shown below:
 What is the Fixed-MOH Volume Variance?
A) $136 favorable 
B) $136 unfavorable 
C) $216 favorable 
D) $216 unfavorable

Quizplus · Accepted Answer

Fixed-MOH Volume Variance = Master Budget Fixed-MOH Cost - Fixed-MOH Applied = (MBQ x SP) - (SQ x SP) = (820 hrs. x $3.40/hr.) - (780 hrs. x $3.40/hr.) = $2,788 - $2,652 = $136 unfavorable

Dairy Delites Had the Following Projected and Incurred the Following