The following information applies to the questions displayed below.
airpro corp. reports the following for november.
actual total factory overhead incurred $28,175
standard factory overhead:
variable overhead 3.10 per unit produced
fixed overhead
($12,000/12,000 predicted units to be produced) $ 1.00 per unit
predicted units to produce 12,000 units
actual units produced 9,800 units
required:
1. compute the overhead volume variance for november and classify it as favorable or unfavorable.

Explanation:

It is $2,205 (Favorable)

Explanation:

Standard Fixed Overhead Rate (SFOR)= $ 1.00

Applied Fixed Overhead(AFO)  = Standard Fixed Overhead Rate × Standard Hours Allowed  per unit

    AFO per unit    = $ 1.00 * 3.10

                              =$ 3.10

Fixed Overhead Volume Variance(FOVV) = Applied Fixed Overhead(AFO) – Budgeted Fixed Overhead(BFO).

FOVV = ( $ 3.10 * 9,800) -$28,175

         =$2,205 (Favorable)

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