Exercise 220 North Coast Manufacturing provided the following information about

Question

Exercise 220 North Coast Manufacturing provided the following information about its standard costing system for 2016: Standard Data Actual Data hr Produced 2 hrs. $100,000 $30 per unit 10,000 units $21 per Labor Budgeted fixed overhead Budgeted variable overhead Budgeted production 9,000 units 17,000 hrs. costing $340,000 $375,000 Labor worked Actual overhead North Coast applies fixed overhead at $10 per unit produced. Overhead controllable variance s Overhead volume variance Total Overhead Variance

Explanation / Answer

Overhead controllable variance = Actual overhead - Overhead budgeted

= $375,000 – [($100,000 + (9,000 × $30)]

= $5,000 Unfavorable

Overhead volume variance = (Normal hours – Std hours) × Fixed overhead rate

= [(10,000 × 2) – (9,000 × 2)] × $5/hr.

= $10,000 Unfavorable

Total overhead variance= Actual overhead – Overhead applied

= $375,000 – [($30 + $10) × 9,000]

= $15,000 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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