Reference no: EM132792282
Question - Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 direct labor-hours × $3 per direct labor-hour = $6
Fixed portion: 2 direct labor-hours × $5 per direct labor-hour = $10
The following data pertain to operations in April:
Actual output 80,000 units
Actual direct labor cost $644,000
Actual direct labor-hours worked 165,000 direct labor-hours
Variable overhead cost incurred $518,000
Fixed overhead cost incurred $860,000
Required - Find the fixed manufacturing overhead volume variance for April?