Question:
Fixed Cost Variances
Stoker Corporation applies fixed overhead at the rate of $0.50 per unit. For May, budgeted fixed overhead was $403,000. The production volume variance amounted to $3,000 unfavorable, and the price variance was $10,000 unfavorable.
Required
a. What was the budgeted volume in units for May?
b. What was the actual volume of units produced in May?
c. What was the actual fixed overhead incurred for May?