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

question 25

Essay

The following information relates to Welty Manufacturing's overhead costs for the month:
$$\begin{array} { | l | l | } \hline \text { Static budget variable overhead } & \$ 14,200 \\\hline \text { Static budget fixed overhead } & \$ 5,600 \\\hline \text { Static budget direct labor hours } & 1,000 \text { hours } \\\hline \text { Static budget number of units } & 5,000 \text { units } \\\hline\end{array}$$ Welty allocates manufacturing overhead to production based on standard direct labor hours.
Welty 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.

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Definitions:

Demography

The statistical study of populations, including the structure, distribution, and trends within human societies.

Predictive Validity

The extent to which a score or measurement can predict future performance or behavior.

Diagnostic Tool

A method or device used by healthcare professionals to identify or diagnose diseases, conditions, or disorders.

Uniformity Myth

The belief that all members of a particular group share the same characteristics or experiences, ignoring individual differences.