Rostad Corporation applies manufacturing overhead to products on the basis of st
ID: 2385414 • Letter: R
Question
Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:Original Budget Actual Costs
Variable overhead costs:
Supplies $7,900 $8,090
Indirect labor 10,730 10,080
Fixed overhead costs:
Supervision 15,710 14,500
Utilities 15,000 15,050
Factory depreciation 60,140 61,300
Total overhead costs $109,480 $109,020
The company based its original budget on 7,900 machine-hours. The company actually worked 7,860 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,790 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.)
$1,265 favorable
$1,265 unfavorable
$1,169 favorable
$1,169 unfavorable
Explanation / Answer
Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget Actual Costs
Variable overhead costs:
Supplies $7,900 $8,090
Indirect labor 10,730 10,080
Fixed overhead costs:
Supervision 15,710 14,500
Utilities 15,000 15,050
Factory depreciation 60,140 61,300
Total overhead costs $109,480 $109,020
The company based its original budget on 7,900 machine-hours. The company actually worked 7,860 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,790 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.)
$1,265 favorable
$1,265 unfavorable
$1,169 favorable
$1,169 unfavorable
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