Rumington Popcom uses a standard cost system and applies overhead on a per unit basis. The company estimated that 40,000 units would be produced in 2020 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was Overhead = $120,000+ $6 per unit During the year, actual overhead cost was $340,000. Actual units produced were 39.000. How much is the overhead volume variance for 2020? $3,250 unfavorable $3,850 unfavorable $4,000 unfavorable O $3.000 unfavorable O $2,700 unfavorable

Rumington Popcom uses a standard cost system and applies overhead on a per unit basis. The company estimated that 40,000 units would be produced in 2020 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was Overhead = $120,000+ $6 per unit During the year, actual overhead cost was $340,000. Actual units produced were 39.000. How much is the overhead volume variance for 2020? $3,250 unfavorable $3,850 unfavorable $4,000 unfavorable O $3.000 unfavorable O $2,700 unfavorable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 30E: Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its...

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