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Perma Weave Textiles Corporation began January with a budget for 47,000 hours of production in the Weaving Department. The department has a full capacity of
Perma Weave Textiles Corporation began January with a budget for 47,000 hours of production in the Weaving Department. The department has a full capacity of 63,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows:
Factory Overhead Cost Variances Perma Weave Textiles Corporation began January with a budget for 47,000 hours of production in the Weaving Department. The department has a full capacity of 63,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: $145,700 Variable overhead Fixed overhead 100,800 Total $246,500 The actual factory overhead was $249,500 for January. The actual fixed factory overhead was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 49,000 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Determine the variable factory overhead controllable variance. Favorable $ b. Determine the fixed factory overhead volume variance. UnfavorableStep by Step Solution
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