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Question

akeAssignmen nt/takeAssignmentMain.do?invoker-assignments&itakeAssignmentSessionLocator-assignment-take;&inprogress-false; eBook Show Me How Calculator Factory Overhead Controllable Variance any produced 2,300 units of product that required S standard hours per unit. The standard variable overhead cost per unit is $4.60 per hour. The actual variable factory overhead was $53,850. Determine the variable factory overhead controlflable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Explanation / Answer

Requirement 1 Variable Factory Overhead controllable variance =Actual expenses-(standard overhead per unit*Standard Number of units) =53850-(2300*5*4.6) 950 Unfavourable Requirement 2 Factory Overhead Volume variance It is difference between Budgted Fixed overhead and Actually applied fixed overhead =24700*2.3-5000*5.5*2.3 6440 Favourable

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