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Davis Company Davis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is

Davis Company Davis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Davis produced 5,000 units:

Standard:
DLH per unit 3.00
Variable overhead per DLH $1.80
Fixed overhead per DLH $3.25
Budgeted variable overhead $27,250
Budgeted fixed overhead $49,500
Actual:
Direct labor hours 16,000
Variable overhead $31,325
Fixed overhead $49,750

Refer to Davis Company. Using the four-variance approach, what is the volume variance?

Select one:

a. $750 F

b. $1,000 U

c. $1,000 F

d. $750 U

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