Factory Overhead Volume Variance Dvorak Company produced 2,400 units of product that required 5.5 standard hours per unit. The standard fixed overhead cost per unit is $2.65 per hour at 12,300 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.

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Factory Overhead Volume Variance

Dvorak Company produced 2,400 units of product that required 5.5 standard hours per unit. The standard fixed overhead cost per unit is $2.65 per hour at 12,300 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.

**Factory Overhead Volume Variance**

Dvorak Company produced 2,400 units of product that required 5.5 standard hours per unit. The standard fixed overhead cost per unit is $2.65 per hour at 12,300 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.

**Result:**

- **Variance Amount:** $22,680
- **Variance Type:** Favorable ✔️

**Explanation:**

The variance is calculated by comparing the actual production achieved to the expected production at normal capacity. A favorable variance indicates that the company utilized its resources more efficiently than planned, leading to cost savings.
Transcribed Image Text:**Factory Overhead Volume Variance** Dvorak Company produced 2,400 units of product that required 5.5 standard hours per unit. The standard fixed overhead cost per unit is $2.65 per hour at 12,300 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. **Result:** - **Variance Amount:** $22,680 - **Variance Type:** Favorable ✔️ **Explanation:** The variance is calculated by comparing the actual production achieved to the expected production at normal capacity. A favorable variance indicates that the company utilized its resources more efficiently than planned, leading to cost savings.
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