103. Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were

Question

103. Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be ?

a. $208,000.

b. $206,000.

c. $202,000.

d. $194,000.

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been?

a. $56,300.

b. $50,300.

c. $53,000.

d. $52,700.

Explanation / Answer

Fixed Overhead applied is $208000

Budgeted Fixed Overhed is $52700

a Budgeted Fixed Overhead (A) 200000 Budgeted Direct Labor Hours (B) 25000 Predetermined overhead Rate (C=A/B) 8 Fixed overhead volume variance is favorable means Overhead applied is more than Budgeted Overhead Fixed overhead volume variance= Budgeted Overhead - Fixed Overhead applied -8000= 200000 - FOH applied FOH applied = 200000+8000 FOH applied = 208000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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