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The following information relates to manufacturing overhead for Chapman Company: Standards: Total fixed factory overhead $450,000 Estimated production 25,000 units (100% of normal capacity) Overhead
The following information relates to manufacturing overhead for Chapman Company:
Standards: |
Total fixed factory overhead $450,000 |
Estimated production 25,000 units (100% of normal capacity) |
Overhead rates are based on machine hours. |
Standard hours allowed per unit produced 2 |
Fixed overhead rate $9.00 per machine hour |
Variable overhead rate $3.50 per hour |
Actual: |
Fixed factory overhead $450,000 |
Production 24,000 units |
Variable overhead $170,000 |
Compute the following: Enter favorable variances as negative numbers.
The following information relates to manufacturing overhead for Chapman Company: Standards: Total fixed factory overhead $450,000 Estimated production 25,000 units (100% of normal capacity) Overhead rates are based on machine hours. Standard hours allowed per unit produced 2 Fixed overhead rate $9.00 per machine hour Variable overhead rate $3.50 per hour Actual: Fixed factory overhead $450,000 Production 24,000 units Variable overhead $170,000 Compute the following: Enter favorable variances as negative numbers. a. Fixed factory overhead volume variance b. Variable factory overhead controllable variance c. Total factory overhead cost varianceStep by Step Solution
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