Reference no: EM132792282

Question - Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:

Standard overhead costs per unit:

Variable portion: 2 direct labor-hours × $3 per direct labor-hour = $6

Fixed portion: 2 direct labor-hours × $5 per direct labor-hour = $10

The following data pertain to operations in April:

Actual output 80,000 units

Actual direct labor cost $644,000

Actual direct labor-hours worked 165,000 direct labor-hours

Variable overhead cost incurred $518,000

Fixed overhead cost incurred $860,000

Required - Find the fixed manufacturing overhead volume variance for April?