Question
McDormand, Inc., reported a $3,200 unfavorable price variance for variable overhead and a $32,000 unfavorable price variance for fixed overhead. The flexible budget had $1,080,000
McDormand, Inc., reported a $3,200 unfavorable price variance for variable overhead and a $32,000 unfavorable price variance for fixed overhead. The flexible budget had $1,080,000 variable overhead based on 36,000 direct labor-hours; only 34,080 hours were worked. Total actual overhead was $1,829,600. The number of estimated hours for computing the fixed overhead application rate totaled 38,600 hours.
a.Compute the following variable overhead variances(Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
I have figured out these here:
Price Variance: 3200 U
Efficiency Variance: 57600 F
Variable OH Cost Variance: 54400 F
b.Compute the following fixed overhead variances.(Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
This is where I am Stuck
Price Variance: 32000 U
Production Volume Variance: ??
Fixed OH Cost Variance??
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