Baby Frames, Inc., evaluates manufacturing overhead by using variance analysis. The following information applies to the month of May: | Actual
| | | Budgeted
| |
|---|
Number of frames manufactured | 19,000 | | | 20,000 | | Variable overhead costs | $ 4,100 | | | $ 2 | per direct labor hour | Fixed overhead costs | $ 22,000 | | | $ 20,000 | $1 per unit | Direct labor hours | 2,100 | hours | | 0.1 | hour per frame |
What is the production volume variance?
|
a. | $1,000 favorable. | |
b. | $2,000 unfavorable. | |
c. | $2,000 favorable. | |
d. | $1,000 unfavorable. |
|
