Blumen Textiles Corporation began April with a budget for 31,000 hours of production in the Weaving Department. The department has a full capacity of 41,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $80,600 Fixed overhead 57,400 Total $138,000 The actual factory overhead was $139,700 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 32,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Variable factory overhead controllable variance: $fill in the blank 1 Favorable b. Fixed factory overhead volume variance: $fill in the blank 3 Unfavorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Blumen Textiles Corporation began April with a budget for 31,000 hours of production in the Weaving Department. The department has a full capacity of 41,000 hours under normal business conditions. The budgeted
| Variable overhead | $80,600 |
| Fixed overhead | 57,400 |
| Total | $138,000 |
The actual factory overhead was $139,700 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 32,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.
a. Variable factory overhead controllable variance: $fill in the blank 1 Favorable
b. Fixed factory overhead volume variance: $fill in the blank 3 Unfavorable
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