Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the

Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product:

Standard Hours Standard Rate Standard Cost
Fixed manufacturing overhead 2 hours $ 6.00 per hour $ 12.00

During the most recent period, the following additional information was available:

The total actual fixed overhead cost was $275,000.

The budgeted amount of fixed overhead cost was $285,000.

46,000 direct labor-hours were actually used to produce 24,130 units.

How much was the fixed overhead volume variance?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Audit A Compendium For Nicaragua

Authors: Amarus Aurelio Urbina

1st Edition

6203976547, 978-6203976540

More Books

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago