(Appendix 11A)Nitrol Corporation Manufactures Brass Vases Using a Standard Cost

Multiple Choice

(Appendix 11A) Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead.The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25.Last year Nitrol produced 84, 000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?

A) $2, 500 Favorable
B) $7, 500 Favorable
C) $12, 500 Favorable
D) $40, 000 Unfavorable