Hayward Inc Hayward Inc produces a unique item. Hayward's management team wishes to perform a variance analysis on its fixed overhead. Fixed overhead is applied to units produced using direct labor hours as its cost driver. The company's managerial accountant has compiled the following information: Projected data: Estimated direct labor hours 50,000 hours Estimated fixed overhead $75,000 Actual
data: Actual production 104,000 units Actual direct labor hours used 52,000 hours Actual fixed overhead $80,000 Refer to the Hayward Inc information above. Hayward's fixed overhead volume variance is:
A) $5,000.
B) $2,000.
C) $3,000.
D) $2,500.
C
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