Harris Company has developed the following standards for one of its products. Direct labor hours is...

Transcribed Image Text:

Harris Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. Direct materials: Direct labor: Variable manufacturing overhead: 10 pounds * $3 per pound 2.5 hours $8 per hour 2.5 hours x $2 per hour The following activity occurred during the month of June: Materials purchased: Materials used: 125,000 pounds for $325,000 110,000 pounds 10,000 units $180,000 for 24,000 dlh $51,000 Units produced: Direct labor: Actual variable manufacturing overhead: Actual Fixed manufacturing overhead: $132,000 Budgeted Fixed Manufacturing Overhead was $138,000 with a Fixed Manufacturing Overhead rate of $6 per hour. Using the 2-way analysis of Overhead variances, what is the Factory Overhead Production Volume variance? Be sure to show ALL your work with formulas in English or abbreviations, if needed, to receive full credit for a correct answer. T TTT Arial 3 (12pt) lick Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Harris Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. Direct materials: Direct labor: Variable manufacturing overhead: 10 pounds * $3 per pound 2.5 hours $8 per hour 2.5 hours x $2 per hour The following activity occurred during the month of June: Materials purchased: Materials used: 125,000 pounds for $325,000 110,000 pounds 10,000 units $180,000 for 24,000 dlh $51,000 Units produced: Direct labor: Actual variable manufacturing overhead: Actual Fixed manufacturing overhead: $132,000 Budgeted Fixed Manufacturing Overhead was $138,000 with a Fixed Manufacturing Overhead rate of $6 per hour. Using the 2-way analysis of Overhead variances, what is the Factory Overhead Production Volume variance? Be sure to show ALL your work with formulas in English or abbreviations, if needed, to receive full credit for a correct answer. T TTT Arial 3 (12pt) lick Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

Answer rating: 100% (QA)

Factory Overhead efficiency variance 2000 Favorable Solution Factory Overhead efficiency varianc... View the full answer