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Megan, Inc. uses the following standard costs per unit for one of its products: Direct labor (2.0 hrs. @ $5.00/hr.) = $10.00; overhead (2.0 hrs. @ $2.50/hr.) = $5.00. The flexible budget for overhead is $120,000 plus $1.00 per direct labor hour (DLH) . Actual data for the past month show total overhead costs of $225,000, total fixed overhead of $123,000, 85,000 hours worked, and 40,000 units produced.
The fixed overhead production volume variance for Megan, Inc. for the past month (to the nearest whole dollar) was:
Thymosin
A hormone secreted by the thymus gland, playing a role in the maturation of T lymphocytes, an essential part of the immune system.
T-cells
A type of white blood cell that plays a central role in cell-mediated immunity, recognizing and destroying infected cells in the body.
Maturation
The process of development and growth, leading to a fully developed or mature state.
Complement Proteins
Proteins in the blood that help or "complement" the immune system in destroying pathogens.
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