Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100

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Business

Jamie Heath

1 June, 01:26

Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100

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Mohamed Carey · Answer 1

Overhead volume balance = $29,400 unfavorable

Explanation:

Giving the following information:

From the following data, calculate the fixed overhead volume variance.

-Actual fixed overhead $40,000

-Budgeted fixed overhead $21,000

-Standard overhead allocation rate $6

-Standard direct labor hours per unit 4 DLHr

-Actual output 2,100.

Overhead volume variance = budgeted fixed overhead - fixed overhead applied = 21,000 - 50,400 = 29,400 unfavorable