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Star Industries uses a standard costing system to apply manufacturing costs to its production process....

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Accounting

Star Industries uses a standard costing system to apply manufacturing costs to its production process. In May, Star anticipated producing 2200 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3000 units and actual fixed manufacturing overhead costs were $28,000.
What was Star's fixed manufacturing overhead volume variance in May?
Selected Answer:
Incorrect $18,200 favorable
Answers:
$16,800 unfavorable
Correct $16,800 favorable
$18,200 favorable
$18,200 unfavorable

Answer & Explanation Solved by verified expert
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