Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The standard fixed overhead cost per unit is $0.95 per hour at 55,000 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.
Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The standard fixed
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The fixed overhead volume variance is the difference between the amount of fixed overhead actually applied to produced goods based on production volume, and the amount that was budgeted to be applied to produced goods.
Formula :
Fixed overhead volume variance = (Actual activity - Normal activity)*Fixed overhead rate per unit
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