The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead volume variance for March is:
A)$7,750 F
B)$7,750 U
C)$1,550 F
D)$3,900 U

Question

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March:  The fixed manufacturing overhead volume variance for March is:
A)$7,750 F 
B)$7,750 U 
C)$1,550 F 
D)$3,900 U

Quizplus · Accepted Answer

The Answer of The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March:  The fixed manufacturing overhead volume variance for March is:
A)$7,750 F 
B)$7,750 U 
C)$1,550 F 
D)$3,900 U

The Dillon Corporation Makes and Sells a Single Product