Stopyra Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable manufacturing overhead$28,200 Budgeted fixed manufacturing overhead$89,280 Budgeted hours 12,000labor-hours Actual production (a) 16,000unitsStandard hours per unit (b) 0.60labor-hoursStandard hours allowed for the actual production (a) × (b) 9,600labor-hours Actual variable manufacturing overhead$26,967 Actual fixed manufacturing overhead$74,280 Actual hours 8,900labor-hoursThe fixed overhead volume variance is: (Round your intermediate
calculations to 2 decimal places.)
A. $17,856 U
B. $17,856 F
C. $2,856 U
D. $2,856 F
Answer: A
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