Calico Company manufactures pillows. For 2020, the company expects fixed overhead costs of $378,000. Calico uses machine-hours to allocate foced overhead costs and anticipates 21,000 hours during the year to manufacture 28,000 pillows. During 2020, Calico manufactured 25,500 pillows and spent $377,000 on fixced overhead costs. Calculate the following: a. The fixed overhead rate for 2020 b. The fixed overhead spending variance for 2020 c. The production-volume variance for 2020 a. Calculate the fixed overhead rate for 2020. Fixed overhead rate per hour for 2020
Calico Company manufactures pillows. For 2020, the company expects fixed overhead costs of $378,000. Calico uses machine-hours to allocate foced overhead costs and anticipates 21,000 hours during the year to manufacture 28,000 pillows. During 2020, Calico manufactured 25,500 pillows and spent $377,000 on fixced overhead costs. Calculate the following: a. The fixed overhead rate for 2020 b. The fixed overhead spending variance for 2020 c. The production-volume variance for 2020 a. Calculate the fixed overhead rate for 2020. Fixed overhead rate per hour for 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Calico Company manufactures pilows. For 2020, the company expects fixed overhead coss of $378,000. Calico uses machine-hours to allocate fixed overhead costs and anticipates
21,000 hours during the year b manufacture 28.000 pillows. During 2020, Calico manufactured 25,500 pilows and spent $377.000 on fxed overhead costs.
Calculate the following:
a. The fixed overhead rate for 2020
b. The fixed overhead spending variance for 2020
C. The production-volume vanance for 2020
a. Calculate the fixed overhead rate for 2020.
Fixed overhead rate per hour for 2020
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