Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.

-Actual fixed overhead $40,000
-Budgeted fixed overhead $21,000
-Standard overhead allocation rate $6
-Standard direct labor hours per unit 4 DLHr
-Actual output 2,10

$29,400 favorable

Explanation:

The formula to compute the fixed overhead volume variance is shown below:

= Budgeted fixed overhead - standard fixed overhead cost allocated to production

where,

Standard fixed overhead cost allocated to production  is

= 2,100 × $6 × 4

= 50,400

So, the fixed overhead volume variance is

= $21,000 - $50,400

= $29,400 favorable

We assume the actual output is 2,100 instead of 2,10

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

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