Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schengen's management has cont
racted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Schengen's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 375 slides. Budgeted and actual production data follows: Standard fixed overhead cost per machine hour $11
Standard machine hours per slide 6
Actual production 395
Actual fixed overhead cost $27,50
What is the fixed manufacturing overhead volume variance in this period?
A. $18,425 unfavorable.
B. $15,975 unfavorable.
C. $15,975 favorable.
D. $18,425 favorable.
The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit.
Standard fixed overhead cost per unit = $11×6 = 116
