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H&X Co. uses a standard job cost system with a normal capacity of 25,000 direct labour hours. H&X Co. produces 12,000 units, which cost $185,700

H&X Co. uses a standard job cost system with a normal capacity of 25,000 direct labour hours. H&X Co. produces 12,000 units, which cost $185,700 for direct labour (23,000 hours), $27,525 for variable overhead, and $136,400 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.00 (2 hours at $5.00 per hour). Calculate the fixed overhead production volume variance.

Fixed overhead production volume variance

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