a) $1,496 favorable b) $1,496 unfavorable c) $1,400 favorable d) $1,400 unfavora
ID: 2409680 • Letter: A
Question
a) $1,496 favorable
b) $1,496 unfavorable
c) $1,400 favorable
d) $1,400 unfavorable
Lossing 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 Indirect labor $ 5,900 10,530 $ 6,090 9,880 Fixed overhead costs: Supervision Utilities Factory depreciation 13,710 13,000 54,890 $98,030 14,300 13,050 54,250 $97,570 Total overhead cost The company based its original budget on 6,000 machine-hours. The company actually worked 5,960 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,890 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places.)Explanation / Answer
Fixed manufacturing Volume variance 1496 Unfavorable Bedgeted Fixed Manufacturing overhead rate*(Denominator hour-Standard hoursallowed) 13.6*(6000-5890) Budgeted Fixed Manufacturing overhead rate 13.60 Budgeted Fixed Manufacturing/No of Budegeted variance (13710+13000+54890)/6000 Ans b $1496 unfavorable If any doubt please comment. If satisfied you can rate
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.