Suppose that a company plans to produce 1,000 units of product called Enco during June 2016. The
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Question:
Suppose that a company plans to produce 1,000 units of product called Enco during June 2016. The expected time to produce a unit of Enco is five hours, and the budgeted fixed overhead is K2,000,000. The standard fixed overhead cost per unit of product E will therefore be as follows.
5 hours at K400 per hour = K2,000 per unit
Actual fixed overhead expenditure in June 2016 turns out to be K2,045,000. The labour force manages to produce 1,100 units of Enco in 5,400 hours of work.
Required:
Calculate the five fixed overhead variances discussed above.
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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