Reference no: EM133011506

The following information is available from the Terry Company:

Actual total factory overhead cost incurred $24,000

Actual fixed overhead cost incurred $11,400

Budgeted fixed overhead expenses $15,000

Actual direct labor (DLH) worked 6,000

Standard DLHs for this period's production (output) 4,600

Standard variable overhead rate per DLH $3.00

Standard fixed overhead rate per DLH $2.50

Problem 1: What is the fixed overhead production volume variance for Terry Company for the period?

A.) $3,100 favorable

B.) $3,500 unfavorable

C.) $3,700 unfavorable

D.) $3,900 favorable

E.) $3,900 unfavorable