Expected volume of production 50,000 units Actual volume of production 47,500 units Budgeted fixed overhead costs(for 50,000 budgeted units) $400,000 Actual fixed overhead costs $415,000 Actual variable overhead costs $790,000 Budgeted variable overhead costs(for 50,000 budgeted units) $855,000 Assume the costminusallocation base for overhead costs is units of production. What is the production volume variance?

Volume Variance= $ 20,000 Unfavorable

Explanation:

The Volume Variance is the difference between actual production (AP) and budgeted production (BP) for a period multiplied by the standard fixed overhead rate (SR)

Volume Variance= (AP-BP) *SR = (47500- 50,000)* 400,000/50,000=

                          = 2,500 * 8=  $ 20,000 Unfavorable

Whenever actual production is less than the budgeted production the fixed overhead charged to production is less than the budgeted cost the volume variance is adverse.

107x106 is the answer

answer$225.00;