Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the
Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance.
| Actual fixed overhead | $38,000 |
| Budgeted fixed overhead | $24,000 |
| Standard overhead allocation rate | $9 |
| Standard direct labor hours per unit | 4 DLHr |
| Actual output | 2,100 units |
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Authors: Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA
2nd Edition
163454059X, 978-1634540599
