The Following Information Relates to Thomas Manufacturing's Overhead Costs for the Month

question 166

Essay

The following information relates to Thomas Manufacturing's overhead costs for the month:
$\begin{array}{|l|l|}\hline\text { Static budget variable overhead } & \$ 14,200 \\\hline \text { Static budget fixed overhead } & \$ 5,600 \\\hline \text { Static budget direct labor hours } & 1,000 \text { hours } \\\hline \text { Static budget number of units } & 5,000 \text { units }\\\hline\end{array}$ Thomas allocates manufacturing overhead to production based on standard direct labor hours.
Thomas reported the following actual results for last month: actual variable overhead,$14,500; actual fixed overhead,$5,400; actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the fixed overhead volume variance.

---

Definitions:

Global Management Learning

The process of acquiring knowledge and skills related to effectively leading and managing across diverse cultural and international contexts.

Transnational Knowledge

Refers to knowledge that transcends national borders, facilitating global understanding and cooperation.

Power Distance Dimension

A cultural dimension that describes the extent to which individuals in a society accept the unequal distribution of power.

Intercultural Competencies

The skills and knowledge required to effectively communicate and interact with individuals from different cultural backgrounds.