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Jordan Industries produced 6,000 units of product that required 1.5 standard hours per unit. The standard fixed overhead cost per unit is $2.05 per hour at 9,500 hours, which is 100% of normal capacity. What is the fixed factory overhead volume variance?

Respuesta :

Answer:

$1,025 unfavorable

Explanation:

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

= Standard fixed overhead cost per unit × ( Standard hours at 100% normal capacity - standard hours based on actual production)

= $2.05 × (9.500 hours - 6,000 units × 1.5 standard hours per unit)

= $2.05 × (9,500 hours - 9,000 hours)

= $2,05 × 500 hours

= $1,025 unfavorable

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