Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Attempts: 1 of 3 used (b) Compute the total, controllable, and volume overhead variances. Variable manufacturing overhead costs $20,000 Fixed manufacturing overhead costs $8,000 Normal

Attempts: 1 of 3 used

(b)

Compute the total, controllable, and volume overhead variances.

Variable manufacturing overhead costs $20,000
Fixed manufacturing overhead costs $8,000
Normal production level in labor hours 8,000
Normal production level in units 4,000
Standard labor hours per unit 2

During the year, 3,800 units were produced, 15,800 hours were worked, and the actual manufacturing overhead was $28,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.

(a)

Correct answer icon

Your answer is correct.

Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 1.25.)

Item

Rate

Variable overhead $
Fixed overhead
Total overhead $

Attempts: 1 of 3 used

(b)

Compute the total, controllable, and volume overhead variances.

Total overhead variance $ UnfavorableFavorableNeither favorable nor unfavorable
Overhead controllable variance $ Neither favorable nor unfavorableUnfavorableFavorable
Overhead volume variance $ UnfavorableFavorableNeither favorable nor unfavorable

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

Managerial Accounting

Authors: Susan V. Crosson, Belverd E. Needles

10th edition

1133940595, 978-1133940593

More Books

Students also viewed these Accounting questions