Bulger Company provided the following data: Standard fixed overhead rate (SFOR) $8 per direct labor hour Actual fixed overhead costs $985,300 Standard hours allowed per unit 6 hours Actual production 20,000 units Required: 1. Calculate the standard hours allowed for actual production. fill in the blank 1 hours 2. Calculate the applied fixed overhead. $fill in the blank 2 3. Calculate the total fixed overhead variance. Enter the amount as a positive number and select Favorable or Unfavorable. $fill in the blank 3
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.
Total Fixed
Bulger Company provided the following data:
| Standard fixed overhead rate (SFOR) | $8 per direct labor hour | |
| Actual fixed overhead costs | $985,300 | |
| Standard hours allowed per unit | 6 hours | |
| Actual production | 20,000 units |
Required:
1. Calculate the standard hours allowed for actual production.
fill in the blank 1 hours
2. Calculate the applied fixed overhead.
$fill in the blank 2
3. Calculate the total fixed overhead variance. Enter the amount as a positive number and select Favorable or Unfavorable.
$fill in the blank 3
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