Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead Actual fixed overhead $30,000 $20,000 Budgeted fixed overhead Standard overhead allocation rate Standard direct labor hours per unit 4 DLHR Actual output 2,300 units O A. $62,800 F
Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead Actual fixed overhead $30,000 $20,000 Budgeted fixed overhead Standard overhead allocation rate Standard direct labor hours per unit 4 DLHR Actual output 2,300 units O A. $62,800 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.
Actual fixed overhead
$30,000
Budgeted fixed overhead
$20,000
Standard overhead allocation rate
$9
Standard direct labor hours per unit
Actual output
4 DLHP
2,300 units
O A. $62,800 F
O B. $20,700 F
OC. $62,800 U
O D. $20,700 U
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