The Standard Variable Overhead Cost Rate for the Gordon Company

Multiple Choice

The standard variable overhead cost rate for the Gordon Company is $11.25 per unit. Budgeted fixed overhead cost is $50,000. The company budgeted 5,000 units for the current period and actually produced 4,150 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) $3,780 favorable
B) $2,100 unfavorable
C) $2,100 favorable
D) $3,780 unfavorable