Hype Production Company Uses a Standard Costing System What Is the Fixed Overhead Volume Variance for Hype Production

Multiple Choice

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

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