25. The following fixed overhead data relates to a company that uses machine hours to allocate fixed manufacturing overhead: Production Machine-hours Fixed overhead costs Actual 53,400 units 1,960 hours $86,520 What is the fixed overhead spending variance? A) $400 favorable B) $400 unfavorable C) $1,056 favorable D) $1,056 unfavorable Static Budget 53,000 units 2,120 hours $86,920
25. The following fixed overhead data relates to a company that uses machine hours to allocate fixed manufacturing overhead: Production Machine-hours Fixed overhead costs Actual 53,400 units 1,960 hours $86,520 What is the fixed overhead spending variance? A) $400 favorable B) $400 unfavorable C) $1,056 favorable D) $1,056 unfavorable Static Budget 53,000 units 2,120 hours $86,920
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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please answer question no. 25 give me
Transcribed Image Text:24. The following fixed overhead data relates to a company that uses machine hours to allocate fixed
manufacturing overhead:
Production
Machine-hours
Fixed overhead costs
Actual
41,000 units
6,020 hours
$125,500
What is the amount of fixed overhead allocated to production?
A) $117,000.00
B) $123,000.00
C) $125,500.00
D) $128,210.13
Production
Machine-hours
Fixed overhead costs
25. The following fixed overhead data relates to a company that uses machine hours to allocate fixed
manufacturing overhead:
B) $400 unfavorable
C) $1,056 favorable
D) $1,056 unfavorable
Static Budget
39,000 units
5,850 hours
$117,000
Actual
53,400 units
1,960 hours
$86,520
What is the fixed overhead spending variance?
A) $400 favorable
Static Budget
53,000 units
2,120 hours
$86,920
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