Question
Nanna Plastics Corp Inc. began this month with a budget for 100,000 hours of production in the Weaving Department. The department has a full capacity
Nanna Plastics Corp Inc. began this month with a budget for 100,000 hours of production in the Weaving Department. The department has a full capacity of 150,000 hours under normal conditions. The budgeted overhead at the planned volumes at the beginning of this month was as follows:
Variable Overhead $1,200,000
Fixed Overhead 750,000
Total $1,950,000
The actual factory overhead was $1,985,000 for the month. The actual factory overhead was as budgeted. During the month, the Weaving Department had standard hours at actual production volume of 105,500 hours.
Determine the variable factory overhead controllable variance.
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