Harris Company Uses a Standard Cost System in Which It

Multiple Choice

Harris Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: $\begin{array}{c}\begin{array}{lll}\text { Denominator activity.....................................................}\\\text {Actual activity................................................................}\\\text {Standard hours allowed for the output............................}\\\text {Predetermined overhead rate \( \$(2 \) variable \( +\$ 3 \) fixed \( ) \) ...}\end{array}\begin{array}{rr}5,000 & \text { DLHs } \\5,600 & \text { DLHs } \\5,500 & \text { DLHs } \\\$ 5 & \text { per DLH } \end{array}\end{array}$
The volume variance would be:

A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F