The following information relates to manufacturing overhead for the Chapman Company: Standards: Total fixed factory overhead -
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Question:
The following information relates to manufacturing overhead for the Chapman Company:
Standards:
Total fixed factory overhead - $450,000
Estimated production - 25,000 units (100% of normal capacity)
Overhead rates are based on machine hours.
Standard hours allowed per unit produced - 2
Fixed overhead rate - $9.00 per machine hour
Variable overhead rate - $3.50 per hour
Actual:
Fixed factory overhead - $450,000
Production - 24,000 units
Variable overhead - $170,000
Required:
(a) Compute the fixed factory overhead volume variance
(b) Compute the variable factory overhead controllable variance.
(c) Compute the total factory overhead cost variance.
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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