Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 40,000 units would be produced in 2020 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:                         Overhead = $120,000 + $6 per unit             During the year, actual overhead cost was $340,000. Actual units produced were 39,000. How much is the overhead volume variance for 2020?              $3,250 unfavorable     $3,850 unfavorable     $4,000 unfavorable     $3,000 unfavorable     $2,700 unfavorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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            Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 40,000 units would be produced in 2020 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:

                        Overhead = $120,000 + $6 per unit

            During the year, actual overhead cost was $340,000. Actual units produced were 39,000. How much is the overhead volume variance for 2020?

        

   

$3,250 unfavorable

   

$3,850 unfavorable

   

$4,000 unfavorable

   

$3,000 unfavorable

   

$2,700 unfavorable

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