The following data is given for the Walker Company:

\begin{array}{ll}\text { Budgeted production } & 1,000 \text { units } \\\text { Actual production } & 980 \text { units }\\\text { Materials: }\\\text { Standard price per lb } & \$ 2.00 \\\text { Standard pounds per completed unit } & 12 \\\text { Actual pounds purchased and used in production } & 11,800 \\\text { Actual price paid for materials } & \$ 23,000\\\text { Labor: }\\\text { Standard hourly labor rate } & \$ 14 \text { per hour } \\\text { Standard hours allowed per completed unit } & 4.5 \\\text { Actual labor hours worked } & 4,560 \\\text { Actual total labor costs } & \$ 62,928\\\text { Overhead: }\\\text { Actual and budgeted fixed overhead }&\$27,000\\\text { Standard variable overhead rate }&\$ 3.50 \text { per standard labor hour }\\\text { Actual variable overhead costs }&\$15,500\end{array}

Overhead is applied on standard labor hours. ?
The factory overhead volume variance is:
A) $65 unfavorable.
B) $65 favorable.
C) $540 unfavorable.
D) $540 favorable.

It Would Be Most Appropriate to Develop Direct Labor Time

Multiple Choice

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