Question
ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for each unit of its
ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for each unit of its single product: standard quantity standard price direct materials 5 pounds $7.50 per pound direct labor 3 hours ????? per hour variable overhead 3 hours ????? per hour fixed overhead 3 hours $9.30 per hour The following information is available for the month of June: 1. Direct materials were purchased at a total cost of $259,000. 2. 15,000 direct labor hours were worked. 3. The variable overhead cost for the month totaled $88,900. 4. 4,000 units were produced. 5. The fixed overhead for the month totaled $96,250. 6. At June 30, there were 6,000 pounds of direct materials left. 7. The direct material price variance was $49,000 unfavorable. 8. The direct labor rate variance was $22,650 favorable. 9. The total direct labor variance was $12,750 unfavorable. 10. The total variable overhead variance was $24,700 unfavorable. 11. The fixed overhead spending variance was $6,050 favorable. Calculate the fixed overhead volume variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).
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