In March, Leona Company made 4,500 units of its product. Leona uses a standard cost system and applies overhead cost based on direct labor hours. Standard: DLH per unit Variable overhead per DLH Fixed overhead per DLH Budgeted variable overhead Budgeted fixed overhead Actual: Direct labor hours Variable overhead Fixed overhead a. b. C. d. $3,875.00 U $3,875.00 F $3,125.00 F 2.50 Refer to Leona Company. Using the four-variance approach, what is the fixed overhead volume variance? $6,063.00 U $1.75 $3.10 $21,875 $38,750 10,000 $26,250 $38,000
In March, Leona Company made 4,500 units of its product. Leona uses a standard cost system and applies overhead cost based on direct labor hours. Standard: DLH per unit Variable overhead per DLH Fixed overhead per DLH Budgeted variable overhead Budgeted fixed overhead Actual: Direct labor hours Variable overhead Fixed overhead a. b. C. d. $3,875.00 U $3,875.00 F $3,125.00 F 2.50 Refer to Leona Company. Using the four-variance approach, what is the fixed overhead volume variance? $6,063.00 U $1.75 $3.10 $21,875 $38,750 10,000 $26,250 $38,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:In March, Leona Company made 4,500 units of its product. Leona uses a standard cost system and applies overhead cost
based on direct labor hours.
Standard:
DLH per unit
Variable overhead per DLH
Fixed overhead per DLH
Budgeted variable overhead
Budgeted fixed overhead
Actual:
Direct labor hours
Variable overhead
Fixed overhead
a.
b.
C.
d.
$3,875.00 U
$3,875.00 F
$3,125.00 F
2.50
Refer to Leona Company. Using the four-variance approach, what is the fixed overhead volume variance?
$6,063.00 U
$1.75
$3.10
$21,875
$38,750
10,000
$26,250
$38,000
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