Alvarado Company produced 2,200 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.00 per direct labor hour at 8,200 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Alvarado Company produced 2,200 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.00 per direct labor hour at 8,200 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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