Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100%
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:
Standard hours at 100% of normal capacity | 30,000 |
Standard hours for actual production | 25,000 |
Standard total FOH cost (25,000 hours $10 per hour) | $250,000 |
Actual Variable FOH costs | $202,500 |
Actual Fixed FOH costs | $60,000 |
Required:
- Calculate Variable FOH Controllable variance.
- Calculate Fixed FOH Volume variance.
- Calculate the total FOH variance.
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