Blumen Textiles Corporation began April with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of 64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $100,800 Fixed overhead 70,400 Total $171,200 The actual factory overhead was $173,300 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 50,000 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Determine the variable factory overhead controllable variance. b. Determine the fixed factory overhead volume variance.

Blumen Textiles Corporation began April with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of 64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $100,800 Fixed overhead 70,400 Total $171,200 The actual factory overhead was $173,300 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 50,000 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Determine the variable factory overhead controllable variance. b. Determine the fixed factory overhead volume variance.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 16E: Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the...

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