Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

Original Budget Actual Costs
Variable overhead costs:
Supplies $7,800 $7,990
Indirect labor 10,720 10,070
Fixed overhead costs:
Supervision 15,610 14,490
Utilities 14,900 14,950
Factory depreciation

59,970

61,040

Total overhead costs

$109,000

$108,540

The company based its original budget on 7,800 machine-hours. The company actually worked 7,760 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,690 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.)

$1,180 favorable

$1,276 favorable

$1,276 unfavorable

$1,180 unfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago