Carl Manufacturing uses a standard cost system, and the following information was provided for the period that just ended: Actual price per kilogram Actual kilograms of material used Actual hourly labor rate $1.90 58,000 $21.50 9,200 $2.00 Actual hours of production Standard price per kilogram Standard kilograms per completed unit 6 kilograms Standard hourly labor rate Standard time per completed unit $21.00 0.80 hr Actual total factory overhead Fixed factory overhead Standard fixed factory overhead rate Standard variable factory overhead rate Maximum plant capacity Plant operated during the period Units completed during the period $70,200 $32,500 $3.20 per labor hour $5.30 per labor hour 10,500 hours 9,500 hours 13,000 What is the variable factory overhead controllable variance?
Carl Manufacturing uses a standard cost system, and the following information was provided for the period that just ended: Actual price per kilogram Actual kilograms of material used Actual hourly labor rate $1.90 58,000 $21.50 9,200 $2.00 Actual hours of production Standard price per kilogram Standard kilograms per completed unit 6 kilograms Standard hourly labor rate Standard time per completed unit $21.00 0.80 hr Actual total factory overhead Fixed factory overhead Standard fixed factory overhead rate Standard variable factory overhead rate Maximum plant capacity Plant operated during the period Units completed during the period $70,200 $32,500 $3.20 per labor hour $5.30 per labor hour 10,500 hours 9,500 hours 13,000 What is the variable factory overhead controllable variance?
Carl Manufacturing uses a standard cost system, and the following information was provided for the period that just ended: Actual price per kilogram Actual kilograms of material used Actual hourly labor rate $1.90 58,000 $21.50 9,200 $2.00 Actual hours of production Standard price per kilogram Standard kilograms per completed unit 6 kilograms Standard hourly labor rate Standard time per completed unit $21.00 0.80 hr Actual total factory overhead Fixed factory overhead Standard fixed factory overhead rate Standard variable factory overhead rate Maximum plant capacity Plant operated during the period Units completed during the period $70,200 $32,500 $3.20 per labor hour $5.30 per labor hour 10,500 hours 9,500 hours 13,000 What is the variable factory overhead controllable variance?
Transcribed Image Text:Carl Manufacturing uses a standard cost system, and the following information was
provided for the period that just ended:
Actual price per kilogram
Actual kilograms of material used
Actual hourly labor rate
$1.90
58,000
$21.50
9,200
$2.00
Actual hours of production
Standard price per kilogram
Standard kilograms per completed unit 6 kilograms
Standard hourly labor rate
Standard time per completed unit
$21.00
0.80 hr
Actual total factory overhead
Fixed factory overhead
Standard fixed factory overhead rate
Standard variable factory overhead rate
Maximum plant capacity
Plant operated during the period
Units completed during the period
$70,200
$32,500
$3.20 per labor hour
$5.30 per labor hour
10,500 hours
9,500 hours
13,000
What is the variable factory overhead controllable variance?
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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