The Dillon Corporation Makes and Sells a Single Product

Multiple Choice

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March:


-The fixed manufacturing overhead volume variance for March is:

A) $7,750 F
B) $7,750 U
C) $1,550 F
D) $3,900 U