Hype Production Company
Hype Production Company Uses a Standard Costing

Multiple Choice

Hype Production Company
Hype Production Company uses a standard costing system. The following information pertains to the current year: $\begin{array}{ll}\text { Actual overhead costs }(\$ 16,500 \text { is fixed) } & \$ 40,125 \\\text { Actual direct labour costs ( } 11,250 \text { hours) } & \$ 131,625 \\\text { Standard direct labour for } 5,500 \text { units: } & \\\text { Standard hours allowed } & 11,000 \text { hours } \\\text { Labour rate } & \$ 12.00\end{array}$ The overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units are as follows: $\begin{array}{lr}\text { Variable overhead } & \$ 22,500 \\\text { Fixed overhead } & 13,500\\\text { Total overhead }&\$36,000\end{array}$
-Refer to Hype Production Company. What is the fixed overhead volume variance?

A) $1,350 U
B) $1,350 F
C) $3,600 F
D) $4,125 U