The data related to Shunda Enterprises Inc's factory overhead cost for the production oft 60,000 units...
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The data related to Shunda Enterprises Inc's factory overhead cost for the production oft 60,000 units of product are as follows: Actual: Variable factory overhead $315,300 Fixed factory overhead 226,000 Standard: 91,000 hrs, at $6 ($3.50 for variable factory overhead) 546,000 Productive capacity at 100% of normal was 89,900 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis: Varlable factory overthead controllable variance: Actual variable factory overhead cost incurred $315,300 Budgeted variable factory overhead for 91,000 hours 318,500 Variance-favorable $(3,200) Fixed factory overhead volume variance: Normal productive capacity at 100% 89,900 hrs. Standard for amount produced 91,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $6 6,600 Variance--unfavorable $3,400 Total factory overhead cost variance-untavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance Favorable Feedback Oer Wn The data related to Shunda Enterprises Inc's factory overhead cost for the production oft 60,000 units of product are as follows: Actual: Variable factory overhead $315,300 Fixed factory overhead 226,000 Standard: 91,000 hrs, at $6 ($3.50 for variable factory overhead) 546,000 Productive capacity at 100% of normal was 89,900 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis: Varlable factory overthead controllable variance: Actual variable factory overhead cost incurred $315,300 Budgeted variable factory overhead for 91,000 hours 318,500 Variance-favorable $(3,200) Fixed factory overhead volume variance: Normal productive capacity at 100% 89,900 hrs. Standard for amount produced 91,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $6 6,600 Variance--unfavorable $3,400 Total factory overhead cost variance-untavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance Favorable Feedback Oer Wn
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Step 1 of 3 Computation of Variable overhead Controllable variance Standard variable overhead Standa... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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