Answer:
C.$5,250 F
Explanation:
Volume variance is the variance between the actual quantity of a product sold or consumed during a period of time. Value of variance can be calculated by multiplying the volume variance with standard rate.
Standard Rate per unit = Budgeted Manufacturing Overhead / Budgeted production = $21,000 / 1200 = $175
Volume Variance = ( Actual Quantity - Budgeted Quantity ) x Standard rate = ( 1500 - 1200 ) x $17.5 = $5,250
As the Actual Production of unit is higher than the budgeted, so the variance is favorable.