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Factory Overhead Cost Variances Port Norris Textiles Corporation began September with a budget for 34,000 hours of production in the Weaving Department. The department has a full capacity of 45,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of September was as follows: Variable overhead $119,000 Fixed overhead 81,000 $200,000 Total The actual factory overhead was $202,400 for September. The actual fixed factory overhead was as budgeted. During September, the Weaving Department had standard hours at actual production volume of 35,000 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: $ X Favorable √ b. Fixed factory overhead volume variance: Unfavorable Feedback ✓ Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.

Factory Overhead Cost Variances Port Norris Textiles Corporation began September with a budget for 34,000 hours of production in the Weaving Department. The department has a full capacity of 45,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of September was as follows: Variable overhead $119,000 Fixed overhead 81,000 $200,000 Total The actual factory overhead was $202,400 for September. The actual fixed factory overhead was as budgeted. During September, the Weaving Department had standard hours at actual production volume of 35,000 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: $ X Favorable √ b. Fixed factory overhead volume variance: Unfavorable Feedback ✓ Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 16E: Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the...
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Factory Overhead Cost Variances Port Norris Textiles Corporation began September with a budget for 34,000 hours of production in the Weaving Department. The department has a full capacity of 45,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of September was as follows: Variable overhead Fixed overhead Total $119,000 81,000 $200,000 The actual factory overhead was $202,400 for September. The actual fixed factory overhead was as budgeted. During September, the Weaving Department had standard hours at actual production volume of 35,000 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: $ X Favorable b. Fixed factory overhead volume variance: $ Feedback Unfavorable ✓ ✓ Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.
Transcribed Image Text:Factory Overhead Cost Variances Port Norris Textiles Corporation began September with a budget for 34,000 hours of production in the Weaving Department. The department has a full capacity of 45,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of September was as follows: Variable overhead Fixed overhead Total $119,000 81,000 $200,000 The actual factory overhead was $202,400 for September. The actual fixed factory overhead was as budgeted. During September, the Weaving Department had standard hours at actual production volume of 35,000 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: $ X Favorable b. Fixed factory overhead volume variance: $ Feedback Unfavorable ✓ ✓ Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.
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