Armstrong Products Armstrong Products Applies Fixed Overhead at a Rate

question 1

Multiple Choice

Armstrong Products Armstrong Products applies fixed overhead at a rate of $3 per direct labor hour. Each unit produced is expected to take 2 direct labor hours. Armstrong expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were $62,000.
Refer to the Armstrong Products information above. Armstrong's fixed overhead volume variance is:

• A) $2,000.
• B) $6,000.
• C) $8,000.
• D) $ 0.

---

Definitions:

Grievances

Formal complaints or disputes brought forward by employees regarding workplace conditions or treatment.

Employee's Personal Life

Refers to an employee's activities, interests, and situation outside of their job responsibilities.

Manager Avoid

The tendency of managers to steer clear of certain situations, tasks, or confrontations in a work environment.

Employee Assistance Program

A work-based intervention program designed to assist employees in resolving personal problems that may be affecting their job performance.