Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be:

A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F

Question

Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data:

The volume variance would be:

A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F

Chauntay Cripps · Accepted Answer

Final Answer : D, Explanation :  Volume variance = Fixed component of the predetermined overhead rate x (Denominator hours - Standard hours allowed for the actual output)= $3 per DLH × (5,000 DLHs - 5,500 DLHs)= $3 per DLH × (-500 DLHs)= $1,500 F

Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be:

A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F

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Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be:A) $2,500 FB) $1,800 FC) $1,800 UD) $1,500 F

Definitions

Learning Objectives

Learning Objectives

Related questions

Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The company has provided the following data: The volume variance would be:

A) $2,500 F
B) $1,800 F
C) $1,800 U
D) $1,500 F