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What the production volume variance dollar amount is

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Zippo, Inc budgeted and incurred (actual) fixed manufacturing overhead costs of $80,000 in 2016. Other information for 2016 follows:

Budgeted or planned production 2,000 units

Actual production totaled 1,800 units

Units sold 1,500 units

Beginning Finished Goods Inv. 400 units

The company uses absorption costing and fixed manufacturing overhead rate was based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.

Problem 1: Under absorption costing, the production volume variance dollar amount is

Reference no: EM132838079

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