Dawson Metal Works applies manufacturing overhead to products based on standard direct labor hours. The budgeted fixed manufacturing overhead cost for the most recent month was $35,700, and the actual fixed manufacturing overhead cost for the month was $36,200. The company based its original budget on 7,500 direct labor hours. The standard hours allowed for the actual output of the month totaled 7,100 direct labor hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?
Dawson Metal Works applies manufacturing overhead to products based on standard direct labor hours. The budgeted fixed manufacturing overhead cost for the most recent month was $35,700, and the actual fixed manufacturing overhead cost for the month was $36,200. The company based its original budget on 7,500 direct labor hours. The standard hours allowed for the actual output of the month totaled 7,100 direct labor hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...
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Dawson Metal Works applies manufacturing overhead to products based on standard direct labor hours. The budgeted fixed manufacturing overhead cost for the most recent month was $35,700, and the actual fixed manufacturing overhead cost for the month was $36,200. The company based its original budget on 7,500 direct labor hours. The standard hours allowed for the actual output of the month totaled 7,100 direct labor hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?
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