Answer:
B. $ 3,650 U
Explanation:
Wave Fashions
Actual fixed overhead $ 32,000
Budgeted fixed overhead $ 26,000
Allocated fixed overhead $ 28,350
Standard overhead allocation rate $ 6.75
Standard direct labor hours per unit 2.1 DLHr
Actual output 2,000 units
Total Fixed Overhead Variance = Budget Variance + Volume Variance
=$ 6000 Unfav - $ 2350 Fav= $ 3650 Unfavorable
Budget Variance = Actual Fixed Overhead- Budgeted Fixed Overhead= $ 32,000- $ 26,000= $ 6000 unfavorable
Volume Variance = Budgeted Fixed Overhead- Allocated Fixed Overhead
Volume Variance= $ 26000- ( Standard Fixed Overhead Rate * Standard Hours)
Volume Variance= $ 26000- ( $ 6.75 * 2.1 * 2000)
Volume Variance= $ 26000- 28350 = 2350 favorable
