Question

The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

Compute the factory overhead volume variance.
Answer

A.$9,000F

B.$9,000U

C.$5,500F

D.$5,500U

Answer 1

5500 f