Question
I need detailed help with steps in how to find answer which was D) and explanation as to why answer is what it is :
I need detailed help with steps in how to find answer which was D) and explanation as to why answer is what it is :
Dosier Corporation applies overhead costs to products on the basis of standard direct labor hours. The standard cost card shows that 5 direct labor hours are required per unit of product. Dosier Company has the following budgeted and actual data for March :
Units Produced : Actual : 22,000 Budgeted : 20,000
Direct Labor Hours : Actual : 105,000 Budgeted : 100,000
Variable Overhead Costs : Actual : $91,000 Budgeted : $80,000
Fixed Overhead Costs : Actual : $52,000 Budgeted : $50,000
The budgeted direct labor hours is used as the denominator activity for the month.
Question : The fixed manufacturing overhead volume variance for March is ? A) $2,500 unfavorable B) $1,000 favorable C) $5,000 unfavorable D) $5,000 favorable E) None
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