The following data are given for Bahia Company: The variable factory overhead co

Question

The following data are given for Bahia Company:

The variable factory overhead controllable variance is

Budgeted production 1,050 units Actual production   918 units Materials:     Standard price per pound $1.939     Standard pounds per completed unit 12      Actual pounds purchased and used in production 10,686      Actual price paid for materials $21,906 Labor:     Standard hourly labor rate $14.80 per hour     Standard hours allowed per completed unit 4.4     Actual labor hours worked 4,727.7     Actual total labor costs $72,097 Overhead:     Actual and budgeted fixed overhead $1,028,000     Standard variable overhead rate $27.00 per standard labor hour     Actual variable overhead costs $132,376 Overhead is applied on standard labor hours.

Explanation / Answer

The variable factory overhead controllable variance = Actual variable overhead- budgeted allowance based on standard hours allowed

   = 132,376 - 109058.4

= 23317.6 U   [Rounded to 23318]

**budgeted allowance based on standard hours allowed =actual units *standard hours per unit *standard variable overhead per unit

= 918*4.4*27

   =109058.4

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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