Armstrong Products Refer to the Armstrong Products Information Below

question 99

Multiple Choice

Armstrong Products
Refer to the Armstrong Products information below.
Armstrong Products applies fixed overhead at a rate of $3 per direct labour hour. Each unit produced is expected to take 2 direct labour hours. Armstrong expected production in the current year to be 10 000 units but 9000 units were actually produced. Actual direct labour hours were 19 000 and actual fixed overhead costs were $62 000.
-Armstrong's fixed overhead volume variance is:

• A) $2000
• B) $6000
• C) $8000
• D) $ 0

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