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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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