Alvarado Company produced 2,200 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.00 per direct labor hour at 8,200 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8PA: Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate...
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Alvarado Company produced 2,200 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.00 per direct labor hour at 8,200 hours, which is 100% of normal capacity.

Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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