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Vaughn Co. uses a standard job cost system with a normal capacity of 26,200 direct labour hours. Vaughn Co. produces 12.900 units,
which cost $169,400 for direct labour (24,200 hours), $25,800 for variable overhead, and $135,450 for fixed overhead. The standard.
variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fored overhead per unit is $10.00 (2 hours at $5.00 per
hour).
Calculate the fixed overhead production volume variance.
Fixed overhead production volume variance
$
24000
Unfavourable
Transcribed Image Text:Vaughn Co. uses a standard job cost system with a normal capacity of 26,200 direct labour hours. Vaughn Co. produces 12.900 units, which cost $169,400 for direct labour (24,200 hours), $25,800 for variable overhead, and $135,450 for fixed overhead. The standard. variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fored overhead per unit is $10.00 (2 hours at $5.00 per hour). Calculate the fixed overhead production volume variance. Fixed overhead production volume variance $ 24000 Unfavourable
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