The St Augustine Corporation Originally Budgeted for $360,000 of Fixed Overhead

question 119

Multiple Choice

The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead volume variance.

• A) $9,000F
• B) $9,000U
• C) $5,500F
• D) $5,500U

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