Question

The data related to Danville Sporting Goods Company’s factory overhead cost for the production of 40,000 units of product are as follows:


Productive capacity at 100% of normal was 100,000 hours, and the factory overhead cost budgeted at the level of 105,000 standard hours was $720,000. Based on these data, the chief cost accountant prepared the following variance analysis:


Identify the errors in the factory overhead cost varianceanalysis.


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  • CreatedFebruary 04, 2014
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