Reference no: EM132762232
Question - The following data is given for the Walker Company:
Budgeted production 1,000 units
Actual production 980 units
Materials:
Standard price per lb $2.00
Standard pounds per completed unit 12
Actual pounds purchased and used in production 11,800
Actual price paid for materials $23,000
Labor:
Standard hourly labor rate $14 per hour
Standard hours allowed per completed unit 4.5
Actual labor hours worked 4,560
Actual total labor costs $62,928
Overhead:
Actual and budgeted fixed overhead $27,000
Standard variable overhead rate $3.50 per standard labor hour
Actual variable overhead costs $15,500
Overhead is applied on standard labor hours.
Required - Compute the factory overhead volume variance?
a. $65 unfavorable.
b. $65 favorable.
c. $540 unfavorable.
d. $540 favorable.