Zero Company\'s standard factory overhead rate is $3.82 per direct labor hour (D
ID: 2469126 • Letter: Z
Question
Zero Company's standard factory overhead rate is $3.82 per direct labor hour (DLH), calculated at 94.00% capacity = 920 standard DLHs. In December, the company operated at 83.00% of capacity, or 812 standard DLHs. Budgeted factory overhead at 83.00% of capacity is $3,270, of which $1,382 is fixed overhead. For December, the actual factory overhead cost was $3,900 for 855 actual DLHs, of which $1,340 was for fixed factory overhead. Under a three-way breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance for Zero Company in December? $573 unfavorable N/A—this variance doesn't exist under a three-way breakdown of the total overhead variance. $531 unfavorable $162 unfavorable $99 unfavorable Zero Company's standard factory overhead rate is $3.82 per direct labor hour (DLH), calculated at 94.00% capacity = 920 standard DLHs. In December, the company operated at 83.00% of capacity, or 812 standard DLHs. Budgeted factory overhead at 83.00% of capacity is $3,270, of which $1,382 is fixed overhead. For December, the actual factory overhead cost was $3,900 for 855 actual DLHs, of which $1,340 was for fixed factory overhead. Under a three-way breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance for Zero Company in December? $573 unfavorable N/A—this variance doesn't exist under a three-way breakdown of the total overhead variance. $531 unfavorable $162 unfavorable $99 unfavorableExplanation / Answer
standard factory overhead rate is $3.82
per direct labor hour (DLH 94.00% capacity = 920
operated at 83.00% of capacity
, or 812 standard DLHs.
Budgeted factory overhead at 83.00% of capacity is $3,270, of which $1,382 is fixed overhead.
factory overhead cost was $3,900 for 855 actual DLHs, of which $1,340 was for fixed factory overhead.
total=7502.82
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