Calculate the fixed overhead volume variance

Reference no: EM13521803

3. Diamond Company calculates predetermined rates based on 250,000 units of production. The standard cost system allows 4 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,000,000, of which $2,200,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 260,000
Direct labor: 1,020,000 hours @ $12
Variable overhead: $850,000
Fixed overhead: $2,190,000
Calculate the fixed overhead volume variance.
a. $88,000 U (underapplied)
b. $44,000 F (overapplied)
c. $88,000 F (overapplied)
d. $44,000 U (underapplied)
e. none of these

Reference no: EM13521803

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