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23 January, 21:28

Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100

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  1. 23 January, 21:37
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    Overhead volume balance = $29,400 unfavorable

    Explanation:

    Giving the following information:

    From the following data, calculate the fixed overhead volume variance.

    -Actual fixed overhead $40,000

    -Budgeted fixed overhead $21,000

    -Standard overhead allocation rate $6

    -Standard direct labor hours per unit 4 DLHr

    -Actual output 2,100.

    Overhead volume variance = budgeted fixed overhead - fixed overhead applied = 21,000 - 50,400 = 29,400 unfavorable
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