Guadalupe Manufacturing Company uses a standard cost system with direct labor-hours as the activity base for overhead. Last year, Guadalupe applied a total of $936,000 of fixed manufacturing overhead cost to the products it produced. The following data relate to production for the year:
What was Guadalupe's fixed manufacturing overhead volume variance?
A) $23,400 favorable
B) $62,400 unfavorable
C) $37,440 unfavorable
D) $58,500 favorable

Question

Guadalupe Manufacturing Company uses a standard cost system with direct labor-hours as the activity base for overhead. Last year, Guadalupe applied a total of $936,000 of fixed manufacturing overhead cost to the products it produced. The following data relate to production for the year: 
What was Guadalupe's fixed manufacturing overhead volume variance?
A) $23,400 favorable 
B) $62,400 unfavorable 
C) $37,440 unfavorable 
D) $58,500 favorable

Quizplus · Accepted Answer

The Answer of Guadalupe Manufacturing Company uses a standard cost system with direct labor-hours as the activity base for overhead. Last year, Guadalupe applied a total of $936,000 of fixed manufacturing overhead cost to the products it produced. The following data relate to production for the year: 
What was Guadalupe's fixed manufacturing overhead volume variance?
A) $23,400 favorable 
B) $62,400 unfavorable 
C) $37,440 unfavorable 
D) $58,500 favorable

Guadalupe Manufacturing Company Uses a Standard Cost System with Direct