Calculating the Fixed Overhead Spending and Volume VariancesStandish Company manufactures consumer products and provided the following information for the month of February:Units produced131,000Standard direct labor hours per unit0.20Standard fixed overhead rate (per direct labor hour)$2.50Budgeted fixed overhead$65,000Actual fixed overhead costs$68,300Actual hours worked26,350Required:1. Calculate the fixed overhead spending variance using the formula approach.$ 3,300 ✔ Unfavorable2. Calculate the volume variance using the formula approach.500✔ Favorable3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new varianceswould be below,Fixed Overhead Spending VarianceVolume VarianceUnfavorableUnfavorable

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Description: Calculating the Fixed Overhead Spending and Volume VariancesStandish Company manufactures consumer products and provided the following information for the month of February:Units produced131,000Standard direct labor hours per unit0.20Standard fixed

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Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 131,000 2. Calculate the volume variance using the formula approach. 500 ✓ Favorable 0.20 $2.50 $65,000 $68,300 26,350 1. Calculate the fixed overhead spending variance using the formula approach. 3,300✔ Unfavorable 3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new would be below, Fixed Overhead Spending Variance Volume Variance Unfavorable Unfavorable

Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 131,000 2. Calculate the volume variance using the formula approach. 500 ✓ Favorable 0.20 $2.50 $65,000 $68,300 26,350 1. Calculate the fixed overhead spending variance using the formula approach. 3,300✔ Unfavorable 3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new would be below, Fixed Overhead Spending Variance Volume Variance Unfavorable Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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