Q now.comillm gnments&takeAssignment; Factory Overhead Variance Corrections The
ID: 2584640 • Letter: Q
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Q now.comillm gnments&takeAssignment; Factory Overhead Variance Corrections The data relabed to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 uvts of product are as tollows Actual:Variable factory overhead $132,100 5,200 30,000 Fixed factory overhead Standard 46,000 hrs at $5 ($2.90 for variable factory overhead) Productive capacty at. 100% of normal Has 45,200 hours, and fa tory overhead cost budgeted at the level of escoo standard hours was $228,500. Based on these data, the chie cost accountant prepared the folowing variance analysis: Vanable factory overhead controlilable variance Actual varable factory overhead cost incurred 132,100 133,400 Budgeted variable factory overhead for 45,000 hours L.3000 Fixed fectory overhead volume variane: Nmal productive capacity at 100% Standand for amount produced Productive cepacity nalt used Standand variable factory overhead rate 5,200 hrs Totai factory overhead cost variance-unfavorable Compute the fallowing to assist you in iderntitying the erors in the factory overheed c cost variance analysis. Enter afavorable varlance as a negative number and an untavorable veriance as a positve number, Round your nterim computations to cent, if required Favorable/Unfaverable Variable Factory Overhead Controlable Verance Faxed Factory Overhead Volume Variance delete 0Explanation / Answer
Variable factory overhead controllable variance is correct. Fixed factory overhead volume variance Normal production capacity at 100% 45200 Hours Stadard for amount produced 46000 Hours Productive capacity used in excess 800 Stadard variable factory overhead rate 5 4000 Favorable Total factory overhead cost variance= 1300+4000=5300 (Favorable)
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