Production in units Total labor hours Total variable overhead Total fixed overhead Total overhead Budgeted Amounts 216,000 5,400 $ 8,100 $ 5,670 $ 13,770 Actual Results 276,000 6,900 $ 10,350 $ 6,080 $ 16,430

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the
standard direct labor requirement to make this amount is 6,000 hours. All overhead is allocated based on direct labor hours. The
following information is available:
Production in units
Total labor hours
Total variable overhead
Total fixed overhead
Total overhead
Multiple Choice
The overhead volume variance for the month in question was:
$1,575 favorable.
$1,575 unfavorable.
$3,825 favorable.
Budgeted
Amounts
$410 unfavorable.
Actual
Results
276,000
6,900
216,000
5,400
$ 8,100
$ 10,350
$ 5,670
$ 6,080
$ 13,770 $ 16,430
Transcribed Image Text:Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the standard direct labor requirement to make this amount is 6,000 hours. All overhead is allocated based on direct labor hours. The following information is available: Production in units Total labor hours Total variable overhead Total fixed overhead Total overhead Multiple Choice The overhead volume variance for the month in question was: $1,575 favorable. $1,575 unfavorable. $3,825 favorable. Budgeted Amounts $410 unfavorable. Actual Results 276,000 6,900 216,000 5,400 $ 8,100 $ 10,350 $ 5,670 $ 6,080 $ 13,770 $ 16,430
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