8. T1. 1. Harp Company produced 8,600 units of product that required 3.25 standa

Question

8. T1.  1.  Harp Company produced 8,600 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variance factory overhead was $111,000. Determine the variable factory overhead controllable variance.

ANS:     

9.        2.  The Harp Company produced 8,600 units of a product that required 3.25 standard hours per unit. The standard fixed overhead cost per unit is $1.20 per hour at 29,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.

ANS:     

Explanation / Answer

Determine variable factory overhead Controllable Variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Use the minus sign to enter favorable variances as negative numbers.

Variable factory overhead controllable variance: $________-260___________ Favorable

$8,100 - (3,800 X $2.20) = -$260

Fixed factory overhead volume variance: $_______350_________ Unfavorable

$13,650 - (3,800 X $3.50) = $350

Total factory overhead cost variance: $_______90__________ Unfavorable

$350 - $260 = $90

Also ($13,650 + $8,100) - (3800 X ($3.50+ $2.20) = 90 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.