Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem - Overhead Variances Manufacturing overhead data for the production of Product X of Cinnabar Industries are as follows: $310,000 Overhead incurred for 31,500 actual
Problem - Overhead Variances Manufacturing overhead data for the production of Product X of Cinnabar Industries are as follows: $310,000 Overhead incurred for 31,500 actual direct labor hours worked Overhead rate (variable $6; fixed $4) at normal capacity of 30,000 direct labor hours Standard hours for worked done $10.00 32,000 In addition, the flexible manufacturing overhead budget shows that budgeted costs (at 32,000 standard hours) are $6 variable per direct labor hour and $120,000 fixed. (Hint: This information is needed for the overhead controllable variance). Choose the best answer by circling one letter. Each correct answer is worth point(s). 1. What is the total overhead variance? a $5,000 favorable. b. $2,000 favorable. c $10,000 favorable. d $10,000 unfavorable
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