Figure 9-3 Reynolds Manufacturing Company has the following information pertaining to a normal monthly 10,000 units of:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:

- Refer to Figure 9-3.What is the fixed overhead volume variance for Reynolds?
A) $6,000 (
B) $-0-
C) $4,000 (
D) $10,000 (

Question

Figure 9-3 Reynolds Manufacturing Company has the following information pertaining to a normal monthly 10,000 units of:
Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit.
Standard factory overhead rates per direct labor hour are:

- Refer to Figure 9-3.What is the fixed overhead volume variance for Reynolds?
A) $6,000 (
B) $-0- 
C) $4,000 (
D) $10,000 (

Quizplus · Accepted Answer

The fixed overhead volume variance is calculated as the difference between the actual fixed overhead incurred and the budgeted fixed overhead. In this case, the actual fixed overhead incurred is $10,000 and the budgeted fixed overhead is $4,000. Therefore, the fixed overhead volume variance is $10,000 - $4,000 = $6,000 (U).

Figure 9-3 Reynolds Manufacturing Company Has the Following Information Pertaining