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fixed overheads volume

This topic has 3 replies, 2 voices, and was last updated 4 days ago by John Moffat.

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June 1, 2014 at 1:51 am #172239
josy87
Member
- Topics: 173
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Hello Sir
please I need help with this question,
QR has budgeted to produce 4000U in January. Actual production was 3 700 units with fixed production overheads of $ 10,300. The standard fixed overhead cost per unit was 1.5 hours at $2.4 per hour. 5800 actual production hours were worked.
find the fixed overhead volume variance
A $1080 FAV
B $480 Fav
C $480 Adv
D $1080 adv
I got D but the right answer in the book is A. Im confused.
June 1, 2014 at 12:43 pm #172324
John Moffat
Keymaster
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D is correct!
(I don’t know which book you found this is, but A is the wrong answer)
November 21, 2024 at 2:03 pm #713404
muskanzohra
Participant
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Can u please explain the same question bit more not just answer like how to solve it
November 22, 2024 at 10:23 am #713426
John Moffat
Keymaster
- Topics: 57
- Replies: 54479
The poster had solved in correctly which is why I didn’t need to show the workings.
They produced 300 units less than budgeted. Therefore the volume variance is 300 x 1.5 hours x $2.40 = $1,080 adverse
Have you watched the free lectures on this?
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