Reference no: EM13776911
The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of factory overhead:
Actual direct labor hours used 16,500
Standard direct labor hours allowed 16,250
Actual total factory overhead $53,200
Budgeted fixed factory overhead $12,000
Budgeted activity in hours 16,000
Total overhead application rate per standard direct labor hour $3.25
Variable overhead application rate per standard direct labor hour $2.50
What was Monroe's production-volume variance for April?
a. $187.50 favorable
b. $187.50 unfavorable
c. $437.50 favorable
d. $437.50 unfavorable
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