The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct
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The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing factory overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours.
The company budgeted $ variable factory overhead cost, $ for fixed factory overhead cost and direct labor hours its practical capacity to manufacture pairs of boots in March.
The factory used direct labor hours in March to manufacture pairs of boots and spent $ on variable overhead during the month. The actual fixed overhead cost incurred for the month was $
The Platter Valley factory of Bybee Industries uses a twovariance analysis of the total factory overhead variance.
Required
Compute the total flexiblebudget variance for overhead and the production volume variance for March. What was the total factory overhead cost variance for March? Indicate whether each variance is favorable F or unfavorable U
Determine the three components of the total flexiblebudget variance for overhead ie the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance; in addition, show the production volume variance for March. Indicate whether each variance is favorable F or unfavorable U
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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