Question
Dosier Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has
Dosier Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
Normal level of activity 5,100 MHs
Actual level of activity 5,000 MHs
Standard activities allowed for the actual output 5,200 MHs
Standard variable manufacturing overhead rate $6.10 per MH
Budgeted fixed manufacturing overhead cost $65,000
Actual variable manufacturing overhead $28,500
Actual total fixed manufacturing overhead $63,000
What was the fixed overhead volume variance for the month?
$1,275 unfavorable
$1,275 favorable
$610 unfavorable
$610 favorable
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