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Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead $186,700 Fixed factory overhead 133,300 Standard: 46,000 hrs. at $7 ($4.10 for variable factory overhead) 322,000 Productive capacity at 100% of normal was 45,000 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $320,100. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $186,700 Budgeted variable factory overhead for 46,000 hours (188,600) Variance-favorable $(1,900) Fixed factory overhead volume variance: Normal productive capacity at 100% 45,000 hrs. Standard for amount produced (46,000) Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $7 Variance-unfavorable 7,000 Total factory overhead cost variance-unfavorable $5,100 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. 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. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance Favorable v Fixed Factory Overhead Volume Variance Favorable v Total Factory Overhead Cost Variance Favorable v

Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead $186,700 Fixed factory overhead 133,300 Standard: 46,000 hrs. at $7 ($4.10 for variable factory overhead) 322,000 Productive capacity at 100% of normal was 45,000 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $320,100. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $186,700 Budgeted variable factory overhead for 46,000 hours (188,600) Variance-favorable $(1,900) Fixed factory overhead volume variance: Normal productive capacity at 100% 45,000 hrs. Standard for amount produced (46,000) Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $7 Variance-unfavorable 7,000 Total factory overhead cost variance-unfavorable $5,100 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. 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. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance Favorable v Fixed Factory Overhead Volume Variance Favorable v Total Factory Overhead Cost Variance Favorable v

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 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...
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Performance Eval Variances: Refer to the picture. Thank you!

Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead $186,700 Fixed factory overhead 133,300 Standard: 46,000 hrs. at $7 ($4.10 for variable factory overhead) 322,000 Productive capacity at 100% of normal was 45,000 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $320,100. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $186,700 Budgeted variable factory overhead for 46,000 hours (188,600) Variance-favorable $(1,900) Fixed factory overhead volume variance: Normal productive capacity at 100% 45,000 hrs. Standard for amount produced (46,000) Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $7 Variance-unfavorable 7,000 Total factory overhead cost variance-unfavorable $5,100 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. 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. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance $4 Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance Favorable
Transcribed Image Text:Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead $186,700 Fixed factory overhead 133,300 Standard: 46,000 hrs. at $7 ($4.10 for variable factory overhead) 322,000 Productive capacity at 100% of normal was 45,000 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $320,100. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $186,700 Budgeted variable factory overhead for 46,000 hours (188,600) Variance-favorable $(1,900) Fixed factory overhead volume variance: Normal productive capacity at 100% 45,000 hrs. Standard for amount produced (46,000) Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $7 Variance-unfavorable 7,000 Total factory overhead cost variance-unfavorable $5,100 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. 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. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance $4 Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance Favorable
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