Question

g Bellingham Company produced 3,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.95 per direct labor hour at 5,500 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.

Answer 1

the fixed factory overhead volume variance is $1,180 unfavorable

Step-by-step explanation:

The computation of the fixed factory overhead volume variance is shown below

= (Actual activity - normal activity)× fixed overhead cost per unit

= (3,400 × 1.5 - 5,500) × $2.95

= (5,100 - 5,500) × 2.95

= 400 × 2.95

= $1,180 unfavorable

Hence, the fixed factory overhead volume variance is $1,180 unfavorable

Simply we applied the above formula so that the correct amount could come