(Appendix 11A)Saffold Corporation has provided the following data for December. The volume variance for December is:
A)$6, 540 F
B)$6, 540 U
C)$16, 350 F
D)$16, 350 U

Question

(Appendix 11A)Saffold Corporation has provided the following data for December.  The volume variance for December is:
A)$6, 540 F 
B)$6, 540 U 
C)$16, 350 F 
D)$16, 350 U

Quizplus · Accepted Answer

Volume variance = Fixed component of the predetermined overhead rate × (Denominator hours - Standard hours allowed for the actual output)
= $32.70 per hour × (8, 400 hours - 8, 900 hours)
= $32.70 per hour × (-500 hours)
= $16, 350 F

(Appendix 11A)Saffold Corporation Has Provided the Following Data for December