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bernie2981 bernie2981
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7 years ago
Litchfield Industries gathered the following information for the month ended June 30:

The static budget volume is 5,500 units:

Overhead flexible budget:

Number of units   9,000   10,000   11,000
Standard machine hours   13,000   14,500   16,000
         
Budgeted variable overhead costs:   $50,000   $56,000   $62,000
Budgeted fixed overhead costs:   $35,750   $35,750   $35,750

Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours.

What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)
A) $36,400 unfavorable
B) $42,250 unfavorable
C) $36,400 favorable
D) $42,250 favorable
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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bernie2981 Author
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7 years ago
You make an excellent tutor!
Cdfields
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Yesterday
Smart ... Thanks!
fgarza2146
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2 hours ago
Correct Slight Smile TY
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