Factory Overhead Volume Variance

Alvarado Company produced $8,000$ units of product that required $7\mathrm{.}5$ standard direct labor hours per unit. The standard fixed overhead cost per unit is $$2\mathrm{.}00$ per direct labor hour at $55,000$ hours, which is $100\%$ of normal capacity.

Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Favorable $$

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The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at $100\%$ of normal capacity and the standard fixed overhead for the actual units produced.