Answer the following question(s) using the information below.
Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:

-What is the production-volume variance?
A) $2,000 unfavourable
B) $3,000 favourable
C) $4,000 unfavourable
D) $5,000 favourable
E) $10,000 favourable

Question

Answer the following question(s) using the information below.
Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:
 
-What is the production-volume variance?
A) $2,000 unfavourable 
B) $3,000 favourable 
C) $4,000 unfavourable 
D) $5,000 favourable 
E) $10,000 favourable

Quizplus · Accepted Answer

$120,000 - [25,000 × (6,000/24,000) × $20.00] = $5,000 favourable

Answer the Following Question(s) Using the Information Below