Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

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?
Transcribed Image Text: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?
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS