Question
Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires three
Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires three standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 210,000 units. Total overhead was budgeted at $910,000 for the year, and the fixed manufacturing overhead rate was $1.00 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: |
Actual production | 208,000 | units |
Actual direct labor-hours | 450,000 | direct labor-hours |
Actual variable manufacturing overhead | $362,000 | |
Actual fixed manufacturing overhead | $576,000 |
Franklin's fixed manufacturing overhead volume variance for the year is:
$57,500 unfavorable
$19,000 favorable
$6,000 unfavorable
$17,500 favorable
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