Jay Company uses a standard cost system in which it applies manufacturing overhe

Question

Jay Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs). The information below pertains to a recent month's activity: denominator activity..................300DLHs actual activity..................................350DHLs Standard hours allowed for output.........360 DLHs predetermined overhead rate ($2 variable+ $3 fixed)........$5 DLHs The volume variance would be: A) $300 F B) $300 U C) $150 F D) $180 F

Explanation / Answer

D) $180 F

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