The following data is given for the Bahia Company: Overhead is applied on standard labor hours.
The factory overhead volume variance is:
A) $65U
B) $65F
C) $540U
D) $540F

Question

The following data is given for the Bahia Company:  Overhead is applied on standard labor hours.
The factory overhead volume variance is:
A) $65U 
B) $65F 
C) $540U 
D) $540F

Quizplus · Accepted Answer

The factory overhead volume variance is calculated by subtracting the budgeted overhead for standard labor hours from the actual overhead. Since the question does not provide any actual overhead or budgeted overhead amounts, we cannot calculate the variance. However, based on the given choices, the only option with an unfavorable variance (U) and a reasonably significant amount is C. Therefore, C ( $540U) is the best choice.

The Following Data Is Given for the Bahia Company