Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help to find the Fixed Factory Overhead VOLUME Variance and the Total Factory Overhead Cost Variance please The data related to Shunda Enterprises Inc.'s
Please help to find the Fixed Factory Overhead VOLUME Variance and the Total Factory Overhead Cost Variance please
The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead 61,000 hrs. at $6 ($3.50 for variable factory overhead) $211,400 151,500 366,000 Standard: Productive capacity at 100% of normal was 60,200 hours, and the factory overhead cost budgeted at the level of 61,000 standard hours was $363,800. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 61,000 hours $211,400 213,500 $(2,100) Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% 60,200 hrs. Standard for amount produced 61,000 800 hrs. Productive capacity not used Standard variable factory overhead rate x $6 Variance-unfavorable 4,800 Total factory overhead cost variance-unfavorable $2,700 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. 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. Variance Amount -2,100 Favorable/Unfavorable Favorable Variable Factory Overhead Controllable Variance $ Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance FavorableStep 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