Discuss a production-volume variance

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Core Technology Company's operational management team is assessing a production-volume variance. Budgeted fixed overhead cost is $390,000. Using past data, one unit of output is budgeted to take 2.0 machine hours and fixed overhead is allocated to actual output at the rate of $20 per machine hour. The actual output is 10,000 units. Required Compute the production-volume variance for this period and indicate whether the value indicates a favorable, F, or an unfavorable, U, variance. A. $3,900; U

B. $10,000; F

C. $1,000; U

D. $1,000; F

E. $10,000; U

 

Reference no: EM131775851

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