Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $15,000 of total factory overhead cost during May, including $6,800 of fixed factory overhead. What is the fixed overhead production-volume variance (to the nearest whole dollar) for Gerhan Company in May
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Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory ov...
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