Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign
Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products.
Actual production | 5,500 units |
Actual factory overhead costs ($16,500 is fixed) | $40,125 |
Actual direct labor costs (11,250 hours) | $131,625 |
Standard direct labor for 5,500 units: | |
Standard hours allowed | 11,000 hours |
Labor rate | $12.00 |
The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
Variable factory overhead | $22,500 |
Fixed factory overhead | 13,500 |
Total factory overhead | $36,000 |
What is the fixed overhead volume variance for Colina Production Company?
a.$3,600 (F)
b.$1,350 (U)
c.$4,125 (U)
d.$1,350 (F)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started