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

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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 1 year ago

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