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?
Chapter1: Financial Statements And Business Decisions
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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?
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