Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.



A) $16,800 F

B) $46,200 U

C) $46,200 F

D) $16,800 U


C) $46,200 F


Explanation: Fixed overhead volume variance = Budgeted fixed overhead - Allocated fixed overhead





Note:


Overhead allocated to production = Standard overhead allocation rate × Standard quantity of the allocation base allowed for actual output


Business

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