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Lehman Plastic Company has an unfavorable total fixed overhead variance of $75,000 and a favorable fixed overhead spending variance of $10,000. What will be the production-volume variance of Lehman Plastic Company

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abiolataiwo2015

The production-volume variance of Lehman Plastic Company is $85,000 U.

Using this formula

Production-volume variance = Total variance - Spending variance

Where:

Total variance=$75,000

Spending variance=$10,000

Let plug in the formula

Production-volume variance = $75,000 - ($10,000)

Production-volume variance= $85,000 U

Inconclusion the production-volume variance of Lehman Plastic Company is $85,000 U.

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