ex. 22-15 EX 22-15 Factory overhead cost variances Obj. 4 Volume variance, The f
ID: 2412325 • Letter: E
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ex. 22-15
EX 22-15 Factory overhead cost variances Obj. 4 Volume variance, The following data relate to fact e following data relate to factory overhead cost for the production of 10,000 computers: $6,000 U Actual: Variable factory overhead Fixed factory overhead 14,000 hrs. at $25 $262,000 90,000 350,000 Standard: If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour Obj. 4Explanation / Answer
Total factory overhead cost budgeted=$ 356000 Fixed factory overhead budgeted=14000*6=$ 84000 Variable factory overhead budgeted=356000-84000=$ 272000 Variable factory overhead controllable variance=Actual variable factory overhead-Budgeted variable factory overhead based on standard hours allowed=262000-272000=10000 F Fixed factory overhead volume variance=Absorbed fixed overheadf-Budgeted fixed overhead=350000-356000=6000 U Total factory overhead cost variance=Budgeted factory overhead-Actual factory overhead=356000-(262000+90000)=4000 F
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