Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?
A)$2,500 Favorable
B)$7,500 Favorable
C)$12,500 Favorable
D)$40,000 Unfavorable

Question

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year:  The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?
A)$2,500 Favorable 
B)$7,500 Favorable 
C)$12,500 Favorable 
D)$40,000 Unfavorable

Quizplus · Accepted Answer

The Answer of Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year:  The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?
A)$2,500 Favorable 
B)$7,500 Favorable 
C)$12,500 Favorable 
D)$40,000 Unfavorable

Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System