Question
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:
| Total budgeted fixed overhead cost for the year | $ 300,000 |
|---|---|
| Actual fixed overhead cost for the year | $ 276,000 |
| Budgeted direct labor-hours | 60,000 |
| Actual direct labor-hours | 56,000 |
| Standard direct labor-hours allowed for the actual output | 56,900 |
What is the fixed overhead volume variance?
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
