Question

Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below.) AirPro Corp. reports the following for November Netual total factory overhead incurred $28,975 Standard factory overhead: Variable overhead $ 2.10 per unit produced Fixed overhead $ 12,300/12, 300 predicted units to be produced) $ 1.00 per unit Predicted units to produce 12,300 units Nctual units produced 10, 400 units QS 21-15 Volume variance LO P3 Compute the overhead volume variance for November and classify it as favorable or unfavorable. Answer is complete but not entirely correct. Volume Variance Total budgeted fixed OH $ 32,240 Total fixed overhead 34.140% Volume variance $ 1.900 Unfavorable applied

Answer 1

Answer

--Variance calculation

Total Budgeted fixed OH	$12,300	[given]
Total Fixed Overhead applied	$10,400	[10400 actual units x $ 1 per unit]
Volume Variance	$1,900	Unfavourable