Answer the following question(s)using the information below.Jenny's Corporation manufactured 25,000 grooming kits for horses during March.The fixed-overhead cost allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to March:

-What is the production-volume variance?
A)$2,000 unfavourable
B)$3,000 favourable
C)$4,000 unfavourable
D)$5,000 favourable
E)$10,000 favourable

Question

Answer the following question(s)using the information below.Jenny's Corporation manufactured 25,000 grooming kits for horses during March.The fixed-overhead cost allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to March:
 
-What is the production-volume variance?
A)$2,000 unfavourable 
B)$3,000 favourable 
C)$4,000 unfavourable 
D)$5,000 favourable 
E)$10,000 favourable

Quizplus · Accepted Answer

The production-volume variance is calculated based on the difference between the budgeted fixed overhead and the applied fixed overhead. A $5,000 favourable variance indicates that the actual production volume was higher than expected, leading to more overhead being absorbed than budgeted.

Answer the Following Question(s)using the Information Below