The standard costs and actual costs for factory overhead for the manufacture of

Question

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) Variable overhead 3 hours@$.80 per hour 3 hours a $2.00 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the factory overhead controllable variance is: a. $3,000 favorable b. $O c. $2,000 unfavorable d. $3,000 unfavorable The amount of the total factory overhead cost variance is: a. $2,500 unfavorable b. $2,000 favorable c. So d. $5,000 unfavorable 10. i I· 2. Division X reported income from operations of $975,000 and total service department charges of $57: Therefore

Explanation / Answer

10 Answer :- (D). $3,000 unfavourable

Explanation :- Calculation of Factory Overhead Controllable Variance = Actual Variable Overhead - Budgeted Variable Overhead

= $18,000 - (2,500 units × 3 hours per unit × $2.00 per hour)

= $18,000 - $15,000

= $3,000 Unfavourable

11 Answer:- (D). $5,000 unfavourable

Explanation :- Total Factory overhead cost Variance = Actual Overhead - Overhead Applied (I. E) Actual hours × POR

= (18,000 + $8,000) - (2500 Units × 3 hours × (2.00 + 0.80per hour))

= 26,000 - $21,000

= $5,000 Unfavourable

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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