Factory Overhead Volume Variance Bellingham Company produced 1,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.80 per direct labor hour at 1,900 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using 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 4BE: Factory overhead volume variance Bellingham Company produced 15,000 units of product that required 4...
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Factory Overhead Volume Variance
Bellingham Company produced 1,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.80 per direct labor hour at 1,900 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:Factory Overhead Volume Variance Bellingham Company produced 1,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.80 per direct labor hour at 1,900 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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