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In: Accounting

The standard variable overhead cost rate for Harris Manufacturing is $30.00 per unit. Budgeted fixed overhead...

The standard variable overhead cost rate for Harris Manufacturing is $30.00 per unit. Budgeted fixed overhead cost is $38,700. Harris Manufacturing budgeted 4,300 units for the current period and actually produced 4,400 finished units. What is the fixed overhead volume​ variance?

Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

A. $900 favorable

B. $3,000 favorable

C. $3,000 unfavorable

D. $900 unfavorable

Solutions

Expert Solution

Fixed overhead volume variance = Budgeted overhead - Standard overhead

= (4,300 units * $30) - (4,400 units * $30)

= $129,000 - $132,000

= $3,000 Favorable

ekkarill92 answered 2 years ago
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