Question
Ashland South Shore Co. produces thingamajigs and uses a standard cost system. Fixed overhead is applied to production at a rate of $34.80 per unit,
Ashland South Shore Co. produces thingamajigs and uses a standard cost system. Fixed overhead is applied to production at a rate of $34.80 per unit, based on budgeted production of 2,975 per month. During December, Ashland South Shore Co. produced 3,140 thingamajigs. Fixed overhead incurred totaled $114,770.
a. | Calculate the fixed overhead spending variance. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Leave no cell blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Spending variance | $ | (Click to select)FavorableNoneUnfavorable |
b. | Calculate the fixed overhead volume variance. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Leave no cell blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Volume variance | $ | (Click to select)UnfavorableFavorableNone |
c. | Calculate the over- or under-applied fixed overhead. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Omit the "$" sign in your response.) |
Fixed overhead | $ | (Click to select)UnderappliedOverapplied |
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