The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows:Fixed overhead (based on 10,000 hours)Variable overheadActual CostsTotal variable cost, $18,200Total fixed cost, $8,000Standard Costs3 hours per unit at $0.70 per hour3 hours per unit at $1.94 per hourThe fixed factory overhead volume variance isOa. $560 unfavorableOb. $700 unfavorableOc. $0Od. $560 favorable

FIXED FACTORY OVERHEAD VOLUME VARIANCE Fixed Overhead Volume Variance is the Difference between…

Answered: The standard costs and actual costs for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs 3 hours per unit at $0.71 per hour 3 hours per unit at $1.90 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,800 Total fixed cost, $7,900 The fixed factory overhead volume variance is Oa. So Ob. $1,420 unfavorable Oc. $1,775 unfavorable Od. $1,420 favorable
The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,800 Total fixed cost, $8,200 The total factory overhead cost variance is Oa. $1,600 unfavorable Ob. $2,930 favorable Oc. $2,930 unfavorable Od. $4,260 favorable Standard Costs 3 hours per unit at $0.70 per hour 3 hours per unit at $2.00 per hour
The standard costs and actual costs for factory overhead for the manufacture of 2,900units of actual production are as follows: Line Item Description Value Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.76 per hour Variable overhead 3 hours per unit at $2.02 per hour Actual CostsTotal variable cost, $17,900Total fixed cost, $7,900 The total factory overhead cost variance is a. $326 unfavorable b. $1,314 favorable c. $2,302 favorable d. $1,314 unfavorable
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs 3 hours per unit at $0.73 per hour 3 hours per unit at $2.06 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,000 Total fixed cost, $8,200 The total factory overhead cost variance is Oa. $1,864 favorable Ob. $3,032 favorable Oc. $1,864 unfavorable Od. $696 unfavorable
The standard costs and actual costs for factory overhead for the manufacture of 2,900units of actual production are as follows: Standard Costs Line Item Description Value Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.71 per hour Variable overhead 3 hours per unit at $1.96 per hour Actual CostsTotal variable cost, $18,100Total fixed cost, $8,200 The fixed factory overhead volume variance is a. $738 favorable b. $0 c. $738 unfavorable d. $923 unfavorable
The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.75 per hour Variable overhead 3 hours per unit at $2.07 per hour Actual Costs Total variable cost, $18,100 Total fixed cost, $8,100 The fixed factory overhead volume variance is a.$780 unfavorable b.$780 favorable c.$975 unfavorable d.$0

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