Reference no: EM132821198

Problem 1: The standard variable overhead cost rate for Walter Manufacturing is $23 per unit. Budgeted fixed overhead cost is $52,000. Walter Manufacturing budgeted 4,000 units for the current period and actually produced 4,100 finished units. What is the production volume variance, assuming that the allocation base for fixed overhead costs is the number of units expected to be produced?

Option 1: $2,300 favourable

Option 2: $1,300 favourable

Option 3: $2,300 unfavourable

Option 4: $1,300 unfavourable