Required information [The following information applies to the questions displayed below.] AirPro Corp. reports the following for November. Actual total factory overhead incurred Standard factory overhead: Variable overhead Fixed overhead ($12,000/12,000 predicted units to be produced) Predicted units to produce Actual units produced $28,175 $ 3.10 per unit produced $ 1.00 per unit 12,000 units 9,800 units Compute the overhead volume variance for November and classify it as favorable, unfavorable or no variance.
Required information [The following information applies to the questions displayed below.] AirPro Corp. reports the following for November. Actual total factory overhead incurred Standard factory overhead: Variable overhead Fixed overhead ($12,000/12,000 predicted units to be produced) Predicted units to produce Actual units produced $28,175 $ 3.10 per unit produced $ 1.00 per unit 12,000 units 9,800 units Compute the overhead volume variance for November and classify it as favorable, unfavorable or no variance.
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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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.
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Required information
[The following information applies to the questions displayed below.]
AirPro Corp. reports the following for November.
Actual total factory overhead incurred
Standard factory overhead:
Variable overhead
Fixed overhead
($12,000/12,000 predicted units to be produced)
Predicted units to produce
Actual units produced
Compute the overhead volume variance for November and classify it as favorable, unfavorable or no variance.
Total budgeted fixed OH
Volume variance
Volume Variance
$28,175
$ 3.10 per unit produced
$1.00 per unit
12,000 units
9,800 units
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Required information
[The following information applies to the questions displayed below.]
AirPro Corp. reports the following for November.
Actual total factory overhead incurred
Standard factory overhead:
Variable overhead
Fixed overhead
($12,000/12,000 predicted units to be produced)
Predicted units to produce
Actual units produced
Compute the overhead volume variance for November and classify it as favorable, unfavorable or no variance.
Total budgeted fixed OH
Volume variance
Volume Variance
$28,175
$ 3.10 per unit produced
$1.00 per unit
12,000 units
9,800 units
< Prev
7 of 7
‒‒‒
www
Next >
G
O
Σ
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