Bellingham Company produced 4,200 units of product that required 2.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.45 per direct labor hour at 11,100 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.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
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Bellingham Company produced 4,200 units of product that required 2.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.45 per direct
labor hour at 11,100 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.
Transcribed Image Text:Bellingham Company produced 4,200 units of product that required 2.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.45 per direct labor hour at 11,100 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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