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

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 x (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

Saffold Corporation Has Provided the Following Data for December