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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

The Standard Costs and Actual Costs for Direct Materials,direct Labor,and