question archive Computation of fixed overhead volume variance: Fixed overhead volume variance = Fixed overhead applied rate * (denominator machine hours - standard machine hours allowed) = (budgeted fixed overhead cost/denominator hours)*(15,000 hours - 12,000 hours) = ($45,000/ 15,000 hours)*(15,000 hours - 12,000 hours) = $9,000 (unfavorable)
Subject:AccountingPrice: Bought3
Computation of fixed overhead volume variance:
Fixed overhead volume variance = Fixed overhead applied rate * (denominator machine hours - standard machine hours allowed)
= (budgeted fixed overhead cost/denominator hours)*(15,000 hours - 12,000 hours)
= ($45,000/ 15,000 hours)*(15,000 hours - 12,000 hours)
= $9,000 (unfavorable)