Dvorak Company produced 1,000 units of product that required three standard hours per unit. The standard fixed overhead cost per unit

Dvorak Company produced 1,000 units of product that required three standard hours per unit. The standard fixed overhead cost per unit is $0.60 per hour at 3,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.

Answer:
$300 unfavorable $0.60 × [3,500 hrs. – (1,000 units × 3 hrs.)]


Giovanni Company produced 3,500 units of product that required five standard hours per unit. The standard fixed overhead cost per unit is $1.80 per hour at 17,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.

Answer:

–$900 favorable $1.80 × [17,000 hrs. – (3,500 units × 5 hrs.)]