Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows 1 direct labor hour per unit.During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
- What is Crawford's fixed overhead volume variance for 2006?
A) $60,000 (F)
B) $24,000 (F)
C) $36,000 (U)
D) $60,000 (U)

Question

Quizplus · Accepted Answer

Fixed overhead volume variance = (Standard fixed overhead rate x (Standard allowed hours - Actual hours))= ($6 x (110,000 - 212,000))= $60,000 (F)

Crawford Company's Standard Fixed Overhead Cost Is $6 Per Direct