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Maxima Corp. uses a standard cost system with machine hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The

Maxima Corp. uses a standard cost system with machine hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following information relates to production for last year:

VariableFixed
Total budgeted overhead (at the denominator level of activity)$14,000?
Total applied overhead$15,400$28,600
Total actual overhead$15,700$31,800

The actual machine hours incurred were 2,300. VMOH Efficiency Variance was $700 Unfavorable.

What was Maxima's FMOH Volume Variance?

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