The management of Brickstone Industries is analyzing fixed manufacturing overhead variances for the fiscal period just ended. It notices that the total fixed manufacturing overhead variance was $240,000 Unfavorable and that the fixed overhead budget variance was $100,000 Favorable. However, Brickstone's accountants had failed to calculate the fixed overhead volume variance. The standard fixed overhead rate was $10 per machine hour.
What is Brickstone's fixed overhead volume variance?
A) $140,000 (F)
B) $340,000 (F)
C) $200,000 (U)
D) $340,000 (U)

Question

Quizplus · Accepted Answer

$240,000 U total fixed overhead variance minus $100,000 F fixed overhead budget variance equals $340,000 U fixed overhead volume variance.

The Management of Brickstone Industries Is Analyzing Fixed Manufacturing Overhead