Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use

image text in transcribed

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual labor hours while producing 35,000 units. (1) Compute the overhead volume variance. Fixed Overhead Applied Fixed OH per DL hr Standard DL hours Fixed Overhead applied Volume Variance Total budgeted fixed OH Total fixed overhead applied Volume variance (2) Compute the overhead controllable variance. Total actual overhead Flexible budget overhead Total Overhead controllable 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

Step: 3

blur-text-image

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

Auditing Electronics Data Processing Systems

Authors: WATNE

1st Edition

0130516163, 978-0130516169

More Books

Students also viewed these Accounting questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago

Question

Understanding Group Leadership Culture and Group Leadership

Answered: 1 week ago