Question
Chillco Corporation produces containers of frozen food. During April, Chillco produced 775 cases of food and incurred the following actual costs. Variable overhead $ 6,700
Chillco Corporation produces containers of frozen food. During April, Chillco produced 775 cases of food and incurred the following actual costs.
Variable overhead | $ | 6,700 | |
Fixed overhead | 10,300 | ||
Actual labor cost (3,000 direct-labor hours) | 46,200 | ||
Actual material cost (16,500 pounds purchased and used) | 31,350 | ||
Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:
Standard Costs per Case | |||
Direct labor (3 hours at $15 per hour) | $ | 45.00 | |
Direct material (20 pounds at $1.60 per pound) | 32.00 | ||
Variable overhead (3 direct-labor hours at $2.40 per hour) | 7.20 | ||
Fixed overhead (3 direct-labor hours at $4 per hour) | 12.00 | ||
Total | $ | 96.20 | |
Annual Budget Information | |||
Variable overhead | $ | 72,000 | |
Fixed overhead | $ | 120,000 | |
Planned activity for year | 30,000 | direct-labor hours | |
Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.)
Direct-material price variance $4,950 Unfavorable
Direct-material purchase price varianc e$4,950 Unfavorable
Direct-material quantity variance $1,600 Unfavorable
Direct-labor rate variance $1,200 Unfavorable
Direct-labor efficiency variance $10,125 Unfavorable
Variable-overhead spending variance $500 Favorable
Variable-overhead efficiency variance $1,620.00 Unfavorable
Fixed-overhead budget variance $300 Unfavorable
Fixed-overhead volume variance _____________ Unfavorable
I only need the last blank answered: fixed-overhead volume variance
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