AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level QS 23-16 (Algo) Volume variance LO P4 Budgeted (flexible)overhead Standard overhead applied. Volume variance Volume Variance $ $ 28,275 $ 32,860 12,400 10,600 1,800 Unfavorable $ 2.10 per unit Compute the volume variance and identify it as favorable or unfavorable. $ 12,400 12,400 units 10,600 units
AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level QS 23-16 (Algo) Volume variance LO P4 Budgeted (flexible)overhead Standard overhead applied. Volume variance Volume Variance $ $ 28,275 $ 32,860 12,400 10,600 1,800 Unfavorable $ 2.10 per unit Compute the volume variance and identify it as favorable or unfavorable. $ 12,400 12,400 units 10,600 units
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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Transcribed Image Text:AirPro Corporation reports the following for this period.
Actual total overhead
Standard overhead applied
Budgeted (flexible) variable overhead rate
Budgeted fixed overhead
Predicted activity level
Actual activity level
QS 23-16 (Algo) Volume variance LO P4
Budgeted (flexible)overhead
Standard overhead applied.
Volume variance
Volume Variance
$
12,400
10,600
1,800
$ 28,275
$ 32,860
Compute the volume variance and identify it as favorable or unfavorable.
Unfavorable
$ 2.10 per unit
$ 12,400
12,400 units
10,600 units
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