Answer:
Volume variance= $1,800 unfavorable
Explanation:
Giving the following information:
Standard fixed overhead per direct labor hour $3
Standard direct labor hours per unit 0.75
Budgeted production 3100
Budgeted fixed overhead costs $6975.00
Actual production in units 3900
Actual fixed overhead costs incurred $2200.00
To calculate the fixed overhead volume variance, we need to use the following formula:
Volume variance= budgeted fixed overhead - fixed overhead applied
Volume variance= 6,975 - [3*(3,900*0.75)]
Volume variance= 6,975 - 8,775= $1,800 unfavorable
