PE 23-4A factory overhead volume variance

Giovanni Company produced 3,500 units of product that required five standard hours per unit. The standard fixed overhead cost per unit is $1.80 per hour at 17,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.

Answer:
–$900 favorable $1.80 × [17,000 hrs. – (3,500 units × 5 hrs.)]