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In March, Leona Company made 4,500 units of its product. Leona uses a standard cost system and applies overhead cost based on direct labor hours.

In March, Leona Company made 4,500 units of its product. Leona uses a standard cost system and applies overhead cost based on direct labor hours.

Standard:
DLH per unit

2.50

Variable overhead per DLH

$1.75

Fixed overhead per DLH

$3.10

Budgeted variable overhead

$21,875

Budgeted fixed overhead

$38,750

Actual:
Direct labor hours

10,000

Variable overhead

$26,250

Fixed overhead

$38,000

Refer to Leona Company. Using the four-variance approach, what is the fixed overhead volume variance?

a.

$3,875.00 U

b.

$3,875.00 F

c.

$3,125.00 F

d.

$6,063.00 U

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