Asparagus Ltd., a successful Canadian company, is able to buy a new type of biodegradable plastic at a fixed price of $150 per roll. The plastic is then cut and sealed to make dry cleaning bags. Fixed factory overhead is estimated to be $506,000 per year. During this past year, 19,800 cartons of dry cleaning bags were actually produced; this represents 90% of the denominator activity level. The following information is also available: Rolls of plastic Used 60,000 Variable Overhead Incurred $200,000 Rolls of Plastic Price Variance $0 Direct Labour Efficiency Variance $9,630 U Fixed Overhead Spending (Budget) Variance $5,000 F Standard Costs Per Carton of Dry Cleaning bags: Labour costs @ $18 per hour $27 Rolls of Plastic 3 rolls Total overhead $32 What is the Total fixed overhead volume variance?

Asparagus Ltd., a successful Canadian company, is able to buy a new type of biodegradable plastic at a fixed price of $150 per roll. The plastic is then cut and sealed to make dry cleaning bags. Fixed factory overhead is estimated to be $506,000 per year. During this past year, 19,800 cartons of dry cleaning bags were actually produced; this represents 90% of the denominator activity level. The following information is also available: Rolls of plastic Used 60,000 Variable Overhead Incurred $200,000 Rolls of Plastic Price Variance $0 Direct Labour Efficiency Variance $9,630 U Fixed Overhead Spending (Budget) Variance $5,000 F Standard Costs Per Carton of Dry Cleaning bags: Labour costs @ $18 per hour $27 Rolls of Plastic 3 rolls Total overhead $32 What is the Total fixed overhead volume variance?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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