Question
The answer I have is in coorect. Can someone show me how to work this problem. Thanks Overhead Application, Fixed and Variable Overhead Variances Chesley
The answer I have is in coorect. Can someone show me how to work this problem. Thanks
Overhead Application, Fixed and Variable Overhead Variances
Chesley Company is planning to produce 2,500,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.7 standard hour of labor for completion. The total budgeted overhead was $1,980,600. The total fixed overhead budgeted for the coming year is $1,325,800. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are:
Actual production (units) | 2,570,000 | Actual variable overhead | $644,500 |
Actual direct labor hours (AH) | 1,536,100 | Actual fixed overhead | $1,370,000 |
Required:
Calculate the fixed overhead spending variance. Do not round intermediate calculations. If required, round final answer to the nearest cent. $3798000 (Unfavorable) is coorect not dollar amount
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