Dixon Company produced 6,000 units of product that required 1.5 standard hours per unit. The standard...
Dixon Company produced 6,000 units of product that required 1.5 standard hours per unit. The standard fixed overhead cost per unit is $0.50 per hour at 10,000 hours, which is 100% of normal capacity. What is the fixed factory overhead volume variance?
a.$(500) favorable
b.$(2,000) favorable
c.$2,000 unfavorable
d.$500 unfavorable
Homework Answers
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Fixed factory overhead volume variance = (6,000*1.5 - 10,000)* 0.50 per hour = (9000 - 10000) * 0.50 = 500 Unfavorable Option D is the answer |
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Dixon Company produced 6,000 units of product that required 1.5 standard hours per unit. The standard...
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fixed overhead cost per unit is $2.60 per hour at 11,300 hours,
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