Germosen, Inc. uses a standard cost system with direct labor hour (DLHs) as the application base for manufacturing overhead. Results for the year are below.
Prior to the start of the year:
Standard DLHs per unit .............................................. 0.20 DLHs per unit
Planned Production......................................................800,000 units
Budgeted DLHs (denominator hours)..........................160,000 DLHs
Predetermined Fixed MOH Rate.................................$12.48 per DLH
At the end of the year:
Actual production...........................................................795,000 units
Actual DLHs .................................................................158,000 DLHs
Actual FMOH Cost.......................................................$936,000
What was Germosen's FMOH Volume Variance for the year?
A. $ 24,960 Favorable
B. $24,960 Unfavorable
C. 12,480 Favorable
D. $12,480 Unfavorable
E. None of the above