Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information relates to Leonard Manufacturing's overhead costs for the month: Static budget variable overhead $14,200 Static budget fixed overhead $5,600 Static budget direct

The following information relates to Leonard Manufacturing's overhead costs for the month:

Static budget variable overhead

$14,200

Static budget fixed overhead

$5,600

Static budget direct labor hours

1,000 hours

Static budget number of units

5,000 units

Leonard allocates manufacturing overhead to production based on standard direct labor hours.

Leonard reported the following actual results for last month: actual variable overhead, $14,500; actual fixed overhead, $5,400; actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.

Compute the fixed overhead cost variance.

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Computer Accounting

Authors: Donna Kay

15th Edition

0077826841, 9780077826840

More Books

Students also viewed these Accounting questions

Question

Are auditors responsible for catching material fraud?

Answered: 1 week ago