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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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