Boulder Corporation Uses a Standard Costing System

Multiple Choice

Boulder Corporation uses a standard costing system. The following factory overhead and production data were reported in September: Standard fixed overhead allocation rate per direct labour hour $2
Estimated monthly direct labour hours 40,000
Standard direct labour hours for actual output in September 42,000
The fixed overhead production volume variance is:

A) $4,000 overapplied
B) $4,000 underapplied
C) $80,000
D) $84,000