Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the...
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Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead Standard: 46,000 hrs. at $4 ($2.30 for variable factory overhead) $104,700 76,200 184,000 Productive capacity at 100% of normal was 45,200 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $182,900. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $104,700 Budgeted variable factory overhead for 46,000 hours 105,800 Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable $(1,100) 45,200 hrs. 46,000 800 hrs. x 54 3,200 $2,100 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. Amount Favorable/Unfavorable 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 Variable Factory Overhead Controllable variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance Amount Favorable/Unfavorable Favorable Favorable Favorable Feedback Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced. Learning Objective 4. Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 30,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead Standard: 46,000 hrs. at $4 ($2.30 for variable factory overhead) $104,700 76,200 184,000 Productive capacity at 100% of normal was 45,200 hours, and the factory overhead cost budgeted at the level of 46,000 standard hours was $182,900. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $104,700 Budgeted variable factory overhead for 46,000 hours 105,800 Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable $(1,100) 45,200 hrs. 46,000 800 hrs. x 54 3,200 $2,100 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. Amount Favorable/Unfavorable 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 Variable Factory Overhead Controllable variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance Amount Favorable/Unfavorable Favorable Favorable Favorable Feedback Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced. Learning Objective 4.
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