# Factory overhead volume variance Bellingham Company produced 15,000 units of product that required 4 standard hours per unit. The standard fixed overhead cost per unit is $1.15 per hour at 58,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 #### Solutions Chapter Section Chapter 23, Problem 23.4APE Textbook Problem ## Factory overhead volume variance Bellingham Company produced 15,000 units of product that required 4 standard hours per unit. The standard fixed overhead cost per unit is$1.15 per hour at 58,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.

Expert Solution
To determine

Factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}(Standard hours for 100% ofnormal capacityStandardhours for actual units produced)×(Fixed factory overhead rate)

To determine: The fixed factory overhead volume variance.

### Explanation of Solution

The fixed factory overhead volume variance is determined as follows:

Fixed factory overheadvolume variance}(Standard hours for 100% ofnormal capacityStandardhours for actual units produced)×(Fixed factory overhead rate)= 58,000 hours60,000 hours ×\$1

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