Calculate the fixed factory overhead volume variance using the above information:
A) $1,701 Favorable
B) $4,866.75 Unfavorable
C) $1,701 Unfavorable
D) $4,866.75 Favorable

Question

Calculate the fixed factory overhead volume variance using the above information:
A) $1,701 Favorable 
B) $4,866.75 Unfavorable 
C) $1,701 Unfavorable 
D) $4,866.75 Favorable

Quizplus · Accepted Answer

To calculate the fixed factory overhead volume variance, we use the formula:
Actual Fixed Overhead - Budgeted Fixed Overhead at Actual Output
= $80,500 - $82,201
= -$1,701 (Unfavorable)

Therefore, the correct answer is C) $1,701 Unfavorable.

Calculate the Fixed Factory Overhead Volume Variance Using the Above