Question
Fargo Corporation reported a $800 favorable price variance for variable overhead and a $8,000 favorable price variance for fixed overhead. The flexible budget had $513,600
Fargo Corporation reported a $800 favorable price variance for variable overhead and a $8,000 favorable price variance for fixed overhead. The flexible budget had $513,600 variable overhead based on 21,400 direct labor-hours; only 21,200 hours were worked. Total actual overhead was $869,600. The number of estimated hours for computing the fixed overhead application rate totaled 22,000 hours.
Required: | |||
(a) | Compute the following variable overhead variances.(Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Prive Variance $ Favorable or Unfavorable Efficiency Variance $ Favorable or Unfavorable Variable overhead cost variance $ Favorable or unfavorable
Price Variance $ Favorable or unfavorable Production volume variance $ Favorable or unfavorable Fixed overhead cost variance $ Favorable or unfavorable |
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