Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system

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Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is P 3,168,000 of which P 864,000 is fixed overhead. The actual results for the year are as follows:

Units produced296,000

Direct labor570,000 hours @ P 9

Variable overheadP 2,230,000

Fixed overheadP 872,000

Calculate the fixed overhead volume variance

a. P 32,000 UNFAVORABLE c. P 32,000 FAVORABLE

b. P 24,000 FAVORABLE d. P 24,000 UNFAVORABLE

WHAT IS THE ANSWER AND SOLUTION TO THIS? THANK YOU

Posted Date: May 14, 2024 07:27 AM

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Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system

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To calculate the fixed overhead volume variance follow these steps 1 Calculate the budgeted fixed ov... View the full answer

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