A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fixed

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A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fixed cost. At the 50,000 direct labor hours worked in March, factory insurance costs were $6,200. Is this a favorable or unfavorable performance? Why?

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Sep 19, 2011 12:26 PM

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A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fixed

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Accounting Principles

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