Hockey Accessories Corporation manufactured 21,400 duffle bags during March. The following fixed overhead data pertain to March: Actual Static Budget Production 21,400 units 22,000 units Machine-hours 3,400 hours 4,400 hours Fixed overhead cost for March $176,300 $184,800 What is the amount of fixed overhead spending variance? Show your calculations.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Hockey Accessories Corporation manufactured 21,400 duffle bags during March. The following fixed
Actual Static Budget
Production 21,400 units 22,000 units
Machine-hours 3,400 hours 4,400 hours
Fixed overhead cost for March $176,300 $184,800
What is the amount of fixed overhead spending variance? Show your calculations.
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