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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 131,500 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead 0.2 $2.30 $64,700 $68,300 26,650 Actual fixed overhead costs Actual hours worked Required: 1. Calculate the fixed overhead spending variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 2 2. Calculate the volume variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 4 Volume Variance 3. What if 127,400 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending $ - Select your answer - Variance FavorableUnfavorableltem 6 $ - Select your answer -

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 131,500 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead 0.2 $2.30 $64,700 $68,300 26,650 Actual fixed overhead costs Actual hours worked Required: 1. Calculate the fixed overhead spending variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 2 2. Calculate the volume variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 4 Volume Variance 3. What if 127,400 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending $ - Select your answer - Variance FavorableUnfavorableltem 6 $ - Select your answer -

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 131,500 0.2 $2.30 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs $64,700 $68,300 26,650 Actual hours worked Required: 1. Calculate the fixed overhead spending variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 2. 2. Calculate the volume variance using the formula approach. $ - Select your answer -FavorableUnfavorableltem 4 3. What if 127,400 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending $ - Select your answer - Variance Volume Variance FavorableUnfavorableltem 6 $ Select your answer - FavorableUnfavorableltem 8
Transcribed Image Text: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 131,500 0.2 $2.30 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs $64,700 $68,300 26,650 Actual hours worked Required: 1. Calculate the fixed overhead spending variance using the formula approach. $ Select your answer -FavorableUnfavorableltem 2. 2. Calculate the volume variance using the formula approach. $ - Select your answer -FavorableUnfavorableltem 4 3. What if 127,400 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending $ - Select your answer - Variance Volume Variance FavorableUnfavorableltem 6 $ Select your answer - FavorableUnfavorableltem 8
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