Answer the following questions using the information below:
Healesville Animal Products manufactured 32 000 horse grooming kits during 2018.The fixed-overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to 2018:
$$\begin{array} { l r r }
& \text { Actual } & \text { Static Budget } \
\text { Production } & 32000 \text { units } & 30000 \text { units } \
\text { Machine-hours } & 6100 \text { hours } & 6000 \text { hours } \
\text { Fixed overhead costs for } 2018 & \$ 123000 & \$ 120000
\end{array}$$
-What is the fixed overhead production-volume variance?
A)$3000 unfavourable
B)$1000 unfavourable
C)$2000 favourable
D)$8000 favourable

Question

Answer the following questions using the information below:
Healesville Animal Products manufactured 32 000 horse grooming kits during 2018.The fixed-overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to 2018:
 $$\begin{array} { l r r } 
& \text { Actual } & \text { Static Budget } \
\text { Production } & 32000 \text { units } & 30000 \text { units } \
\text { Machine-hours } & 6100 \text { hours } & 6000 \text { hours } \
\text { Fixed overhead costs for } 2018 & \$ 123000 & \$ 120000
\end{array}$$
-What is the fixed overhead production-volume variance?
A)$3000 unfavourable
B)$1000 unfavourable
C)$2000 favourable
D)$8000 favourable

Quizplus · Accepted Answer

The fixed overhead production-volume variance is calculated as (Budgeted Production - Actual Production) x Fixed Overhead Rate per Unit. Here, (30,000 - 32,000) x $20 = $8,000 favourable.

Answer the Following Questions Using the Information Below: Healesville Animal

Answer the Following Questions Using the Information Below:
Healesville Animal