Computing the factory overhead volume variance

Reference no: EM13121314

The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

Compute the factory overhead volume variance.

A) 9,000F

B) 9,000U

C) 5,500F

D) 5,500U

Reference no: EM13121314

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