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Figure 11-4

Question 61

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Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows:
Figure 11-4. Kris Company calculates its predetermined rates using practical volume,which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000,of which $994,000 is fixed overhead.The actual results for the year are as follows: Refer to Figure 11-4.Calculate the fixed overhead volume variance. A) $32,000 U B) $20,000 F C) $22,000 F D) $4,000 U E) none of these Refer to Figure 11-4.Calculate the fixed overhead volume variance.


A) $32,000 U
B) $20,000 F
C) $22,000 F
D) $4,000 U
E) none of these

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