Two-Way Overhead Variances The Terrain Company has a standard absorption and flexible budgeting system and uses a

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Two-Way Overhead Variances

The Terrain Company has a standard absorption and flexible budgeting system and uses a two-way analysis of overhead variances.Selected data for the June production activity are:

Budgeted fixed factory overhead costsP64,000

Actual factory overhead230,000

Variable factory overhead rater per DLHP5

Standard DLH32,000

Actual DLH32,000

The budget (controllable) variance for June is

A.P1,000 favorableC.P6,000 favorable

B.P1,000 unfavorableD.P6,000 unfavorable

Why the answer is P6,000 unfavorable? Put a computation.

Posted Date: Jun 21, 2024 10:08 PM

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Two-Way Overhead Variances The Terrain Company has a standard absorption and flexible budgeting system and uses a

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