Hyteck, Inc. is a capital intensive firm. Indirect costs make up nearly 70% of the product costs. The company has no direct material costs because customers provide the direct materials used for each job. To plan and control such costs, the firm employs flexible budgets and standard costs. Overhead rates, based on direct labor hours, are derived from the master budget.

Master Actual

Budget Results

Units produced 2,000 1,820

Direct labor hours 10,000 9,200

Fixed overhead $100,000 $98,000

Variable overhead $160,000 $150,000

Direct labor $100,000 $90,000

I need help finding the fixed overhead production volume variance.

the formula I have is (SQA x SR) - Estimated Fixed Costs

so... ( some number x 1820 x 10) - 100,000

I need help finding that number and understanding the process for finding Standard quantity allowed

The 10 is SR = 100000,10000

Thanks!