Question
Bat Company's flexible budget for the units manufactured in May shows $15,780 of total factory overhead; this output level represents 70% of available capacity. During
Bat Company's flexible budget for the units manufactured in May shows $15,780 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,210 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $16,600 of total factory overhead cost during May, including $5,700 for fixed factory overhead.
What is the total factory overhead flexible budget variance for Bat Company in May?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started