Fixed overhead budget and volume variance

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Reference no: EM1359568

Required assistance calculating fixed overhead budget and volume variance:

The Stanford Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:

Standard:
Machine hours (MH) per unit...........2
Fixed overhead rate per MH.......$5.00
Budgeted fixed overhead........$25,000

Actual:
Machine hours................4,800
Fixed overhead............$26,500
Units produced................2,625

Required:

Calculate the fixed overhead budget variance and volume variance for the month of June.

Reference no: EM1359568

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