Required assistance calculating fixed overhead budget and volume variance:
The Stanford Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:
Standard:
Machine hours (MH) per unit...........2
Fixed overhead rate per MH.......$5.00
Budgeted fixed overhead........$25,000
Actual:
Machine hours................4,800
Fixed overhead............$26,500
Units produced................2,625
Required:
Calculate the fixed overhead budget variance and volume variance for the month of June.