Answer the following question(s) using the information below.
Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:

-What is the production-volume variance?
A) $4,100 unfavourable
B) $4,100 favourable
C) $1,650 unfavourable
D) $5,750 unfavourable
E) $5,750 favourable

Question

Answer the following question(s) using the information below.
Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:
 
-What is the production-volume variance?
A) $4,100 unfavourable 
B) $4,100 favourable 
C) $1,650 unfavourable 
D) $5,750 unfavourable 
E) $5,750 favourable

Quizplus · Accepted Answer

$57,500 - [54,000 × (1,150/60,000) × $50.00] = $5,750 unfavourable

Answer the Following Question(s) Using the Information Below