The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows:
Variable cost @ $2 per hour
Total variable cost,$18,000
Fixed cost @ $0.80 per hour
Total fixed cost,$8,000
The amount of the fixed factory overhead volume variance is
A) $2,000 favorable.
B) $2,500 favorable.
C) $2,500 unfavorable.
D) $2,000 unfavorable.
Correct Answer:
Verified
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