Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $254,600 Fixed factory

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 6,000 computers:

Actual: Variable factory overhead $254,600
Fixed factory overhead 72,500
Standard: 6,000 hrs. at $51 306,000

If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $335,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance Amount Favorable/Unfavorable
Variable factory overhead controllable variance $
Fixed factory overhead volume variance
Total factory overhead cost 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

Computers In Medical Audit A Guide Commissioned By The West Midlands Regional Health Authority

Authors: R. Tyndall, Michael Rigby, Anne McBride, Chris Shiels

2nd Edition

1853151777, 978-1853151774

More Books

Students also viewed these Accounting questions

Question

What is the importance of the Texas Performance Review (TPR) System

Answered: 1 week ago