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Litchfield Industries Gathered the Following Information for the Month Ended

question 65

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Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units:
Overhead flexible budget:
Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5,500 units: Overhead flexible budget:   Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)  A) $42,250 unfavorable B) $42,250 favorable C) $36,400 unfavorable D) $36,400 favorable Actual production was 12,000 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.)


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