XYZ Co. uses standard absorption costing system. For a certain period, budgeted Fixed Overheads were 74,20,000; Budgeted production was 30,000 units; Fixed Overhead cost was over absorbed by 7 16,000 and Fixed Overhead Expenditure variance was 7 30,000 (Favourable).

XYZ Co. uses standard absorption costing system. For a certain period, budgeted Fixed Overheads were 74,20,000; Budgeted production was 30,000 units; Fixed Overhead cost was over absorbed by 7 16,000 and Fixed Overhead Expenditure variance was 7 30,000 (Favourable).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EA: A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

What was the actual production?

XYZ Co. uses standard absorption costing system. For a certain period, budgeted Fixed
Overheads were 74,20,000; Budgeted production was 30,000 units; Fixed Overhead cost
was over absorbed by 7 16,000 and Fixed Overhead Expenditure variance was 7 30,000
(Favourable).

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