Question Tag: Volume Variance

The data below relates to Odeneho Plc and they are in respect of the production of its product, Milcho, for the first quarter ended 31 March 2022.

• Budgeted output: 5,000 units
• Standard hours to produce one unit: 2 hours
• Budgeted fixed production overhead: GH¢25,000
• Actual fixed production overhead incurred: GH¢25,840
• Actual hours worked: 10,500
• Actual units produced: 4,980

Required:
Determine the following:
i) Fixed overhead expenditure variance.
(2 marks)

ii) Fixed overhead capacity variance.
(2 marks)

iii) Fixed overhead efficiency variance.
(2 marks)

iv) Fixed overhead volume variance.
(2 marks)

v) Fixed production overhead variance.
(2 marks)