The Standard Variable Overhead Cost Rate for the Croskey Company

question 149

Multiple Choice

The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted fixed overhead cost is $60,000. The Croskey Company budgeted 4,000 units for the current period and actually produced 3,860 finished units. What is the production volume variance, assuming that the allocation base for fixed overhead costs is the number of units expected to be produced?

• A) $3,780 favourable
• B) $2,100 unfavourable
• C) $2,100 favourable
• D) $3,780 unfavourable

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