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Carvelle Cabinets set the following standard cost per unit for 2008.
Fixed overhead (4 machine hours at $10) $40
Variable overhead (4 machine hours at $8) $32
The standards were set based on a capacity of 20 000 machine hours.
During the year, 5 100 units were produced.
Fixed overhead $205 000
Variable overhead $165 750
Machine hours worked 19 800
Question 1: Find What was Carvelle's fixed overhead volume variance?
Select one:
a. $4 000 favourable
b. $1 000 unfavourable
c. $2 000 favourable
d. $4 000 unfavourable
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