Factory overhead cost variances The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead Fixed factory overhead Standard: 7,000 hrs. at $58.00 $344,600 79,750 406,000 If productive capacity of 100% was 11,000 hours and the total factory overhead cost budgeted at the level of 7,000 standard hours was $435,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Controllable variance Volume variance Total factory overhead cost variance Amount Favorable/Unfavorable
Factory overhead cost variances The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead Fixed factory overhead Standard: 7,000 hrs. at $58.00 $344,600 79,750 406,000 If productive capacity of 100% was 11,000 hours and the total factory overhead cost budgeted at the level of 7,000 standard hours was $435,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Controllable variance Volume variance Total factory overhead cost variance Amount Favorable/Unfavorable
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 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...
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