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The following information is available from the Terry Company:
Actual total factory overhead cost incurred $24,000
Actual fixed overhead cost incurred $11,400
Budgeted fixed overhead expenses $15,000
Actual direct labor (DLH) worked 6,000
Standard DLHs for this period's production (output) 4,600
Standard variable overhead rate per DLH $3.00
Standard fixed overhead rate per DLH $2.50
Problem 1: What is the fixed overhead production volume variance for Terry Company for the period?
A.) $3,100 favorable
B.) $3,500 unfavorable
C.) $3,700 unfavorable
D.) $3,900 favorable
E.) $3,900 unfavorable
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