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When Walston Corporation prepared its budget for 2020, it estimated fixed overhead of $480,000 ($40,000 per month) and variable overhead at $2.00 per unit produced.

When Walston Corporation prepared its budget for 2020, it estimated fixed overhead of $480,000 ($40,000 per month) and variable overhead at $2.00 per unit produced. The company planned to produce 48,000 units during the year at a rate of 4,000 units each month. During April, the company produced 3,700 units and total overhead costs were $55,000. How much is the overhead volume variance for April?

a) $2,250 unfavorable
b) $3,000 unfavorable
c) $3,250 unfavorable
d) $1,350 unfavorable
e) $2,700 unfavorable

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