Standish Company manufactures consumer products and provided the following information for the month of February: Units produced
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Question:
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced | 131,300 |
Standard direct labor hours per unit | 0.2 |
Standard fixed overhead rate (per direct labor hour) | $2.20 |
Budgeted fixed overhead | $64,500 |
Actual fixed overhead costs | $68,100 |
Actual hours worked | 26,450 |
. Calculate the fixed overhead spending variance using the formula approach. $
Favorable or Unfavorable
2. Calculate the volume variance using the formula approach. $
Favorable or Unfavorable
3. What if 127,500 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below.
Fixed Overhead Spending Variance | $ | Favorable or Unfavorable |
Volume Variance | $ | Favorable or Unfavorable |
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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