Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget | Actual Costs | ||||||||||
Variable overhead costs: | |||||||||||
Supplies | $ | 6,700 | $ | 6,890 | |||||||
Indirect labor | 10,610 | 9,960 | |||||||||
Fixed overhead costs: | |||||||||||
Supervision | 14,510 | 14,380 | |||||||||
Utilities | 13,800 | 13,850 | |||||||||
Factory depreciation | 58,050 | 58,130 | |||||||||
Total overhead cost | $ | 103,670 | $ | 103,210 | |||||||
The company based its original budget on 6,800 machine-hours. The company actually worked 6,760 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,690 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places.)
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