Hatter,Inc

question 174

Essay

Hatter,Inc.allocates fixed overhead at a rate of $17 per direct labor hour.This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units.During July,Hatter produced 5,500 units.Budgeted fixed overhead is $66,000,and overhead incurred was $67,000.
Required:
Determine the volume variance for July.

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Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to promote consumer protection and to eradicate anticompetitive business practices.

Deceptive Advertising

Marketing practices that mislead or trick consumers into buying or using a product or service through false claims, incomplete information, or other misleading means.

Independent Testing

Testing conducted by an external or third-party organization to ensure objectivity and impartiality, usually for quality control or compliance purposes.

Credit Contract

A legally binding agreement between a borrower and a lender where the borrower is extended a line of credit and agrees to repay the money, subject to agreed terms and conditions.