The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% production capacity. Production was
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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) $9,000U
b) $5,500F
c) $5,500U
d) $9,000F
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