(Appendix 10A) The following data for May has been provided by Mccawley Corporation.

-The volume variance for May is:
A) $2,070 U
B) $4,140 U
C) $4,140 F
D) $2,070 F

Question

(Appendix 10A) The following data for May has been provided by Mccawley Corporation.
 
-The volume variance for May is:
A) $2,070 U 
B) $4,140 U 
C) $4,140 F 
D) $2,070 F

Quizplus · Accepted Answer

Fixed component of the predetermined overhead rate = $53,820 ÷ 2,600 hours = $20.70 per hour
Volume variance = Fixed component of the predetermined overhead rate x (Denominator hours - Standard hours allowed for the actual output)
= $20.70 per hour × (2,600 hours - 2,800 hours)
= $20.70 per hour × (-200 hours)
= $4,140 F

(Appendix 10A) the Following Data for May Has Been Provided