Question
FIXED OVERHEAD SPENDING AND VOLUME ARIANCES, COLUMNAR AND FORMULA APPROACHES A company provided the following information: Standard fixed overhead rate (SFOR) per direct labour hour
FIXED OVERHEAD SPENDING AND VOLUME ARIANCES, COLUMNAR AND FORMULA APPROACHES
A company provided the following information:
Standard fixed overhead rate (SFOR) per direct labour hour $7.00
Actual fixed overhead rate (AFOR) per direct labour hour $6.95
Actual direct labour hours worked (AH) 36,100
Actual production in units 12,000
Standard hours allowed for actual units produced (SH) 36,000
Required:
- Using the columnar approach, calculate the fixed overhead spending and efficiency variances.
- Using the formula approach, calculate the fixed overhead spending variance.
- Using the formula approach, calculate the fixed overhead efficiency variance.
- Calculate the total fixed overhead variance.
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CLEP Financial Accounting Study Guide
Authors: Passyourclass
1st Edition
1614330115, 978-1614330110
