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Problem 1: Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The budgeted data indicates planned production of 50,000 units using 200,000 direct labour hours and fixed overhead of $600,000. The accountant provides the actual results of 48,000 units produced using 195,000 direct labour hours incurring fixed overhead of $610,000. What was the fixed overhead volume variance?
Select one:
a. $15,000 favourableb. $25,000 favourablec. $25,000 unfavourabled. $15,000 unfavourable
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