Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2017. Other information for 2017 includes: The budgeted
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Question:
- Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2017. Other information for 2017 includes:
- The budgeted denominator level is 1,000 units.
- Units produced total 750 units.
- Units sold total 600 units.
- Beginning inventory was zero.
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
What is the production volume variance?
a. $2,000
b. $900
c. $0
d. $1,500
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