Question

Fargo Corporation reported a $800 favorable price variance for variable overhead and a $8,000 favorable price variance for fixed overhead. The flexible budget had $513,600 variable overhead based on 21,400 direct labor-hours; only 21,200 hours were worked. Total actual overhead was $869,600. The number of estimated hours for computing the fixed overhead application rate totaled 22,000 hours.

Required
a. Prepare a variable overhead analysis like the one in Exhibit 16.10.
b. Prepare a fixed overhead analysis like the one in Exhibit 16.13.



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  • CreatedDecember 18, 2013
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