The following data is given for the Bahia Company: Budgeted production (at 100% of normal capacity) 1,100 units Actual production 928 units Materials: Standard price per pound $1.81 Standard pounds per completed unit 12 Actual pounds purchased and used in production 10,802 Actual price paid for materials $22,144 Labor: Standard hourly labor rate $14.86 per hour Standard hours allowed per completed unit 4.2 Actual labor hours worked 4,779.2 Actual total labor costs $72,883 Overhead: Actual and budgeted fixed overhead $1,012,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $133,818 Overhead is applied on standard labor hours. Round your final answer to the nearest dollar. Do not round interim calculations. The fixed factory overhead volume variance is a.$158,240 unfavorable b.$158,240 favorable c.$24,685 unfavorable d.$24,685 favorable
The following data is given for the Bahia Company: Budgeted production (at 100% of normal capacity) 1,100 units Actual production 928 units Materials: Standard price per pound $1.81 Standard pounds per completed unit 12 Actual pounds purchased and used in production 10,802 Actual price paid for materials $22,144 Labor: Standard hourly labor rate $14.86 per hour Standard hours allowed per completed unit 4.2 Actual labor hours worked 4,779.2 Actual total labor costs $72,883 Overhead: Actual and budgeted fixed overhead $1,012,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $133,818 Overhead is applied on standard labor hours. Round your final answer to the nearest dollar. Do not round interim calculations. The fixed factory overhead volume variance is a.$158,240 unfavorable b.$158,240 favorable c.$24,685 unfavorable d.$24,685 favorable
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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Question
The following data is given for the Bahia Company:
| Budgeted production (at 100% of normal capacity) | 1,100 units |
| Actual production | 928 units |
| Materials: | |
| Standard price per pound | $1.81 |
| Standard pounds per completed unit | 12 |
| Actual pounds purchased and used in production | 10,802 |
| Actual price paid for materials | $22,144 |
| Labor: | |
| Standard hourly labor rate | $14.86 per hour |
| Standard hours allowed per completed unit | 4.2 |
| Actual labor hours worked | 4,779.2 |
| Actual total labor costs | $72,883 |
| Overhead: | |
| Actual and budgeted fixed overhead | $1,012,000 |
| Standard variable overhead rate | $28.00 per standard labor hour |
| Actual variable overhead costs | $133,818 |
| Overhead is applied on standard labor hours. |
Round your final answer to the nearest dollar. Do not round interim calculations.
The fixed factory overhead volume variance is
a.$158,240 unfavorable
b.$158,240 favorable
c.$24,685 unfavorable
d.$24,685 favorable
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