Required information [The following information applies to the questions displayed below.] a) b) (c) Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 55,200 machine hours per year, which represents 27,600 units of output. Annual budgeted fixed factory overhead costs are $276,000 and the budgeted variable factory overhead cost rate is $3.70 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,500 units, which took 44,200 machine hours. Actual fixed factory overhead costs for the year amounted to $264,800 while the actual variable overhead cost per unit was $3.60. ased on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each ariance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole ollar amount.) Total overhead variance. Total flexible-budget variance Production volume variance
Required information [The following information applies to the questions displayed below.] a) b) (c) Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 55,200 machine hours per year, which represents 27,600 units of output. Annual budgeted fixed factory overhead costs are $276,000 and the budgeted variable factory overhead cost rate is $3.70 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,500 units, which took 44,200 machine hours. Actual fixed factory overhead costs for the year amounted to $264,800 while the actual variable overhead cost per unit was $3.60. ased on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each ariance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole ollar amount.) Total overhead variance. Total flexible-budget variance Production volume variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 55,200 machine hours per year, which represents 27,600 units of output. Annual budgeted fixed
factory overhead costs are $276,000 and the budgeted variable factory overhead cost rate is $3.70 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 21,500 units, which took 44,200 machine hours. Actual fixed factory overhead costs for the year
amounted to $264,800 while the actual variable overhead cost per unit was $3.60.
Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each
variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole
dollar amount.)
(a) Total overhead variance
(b)
Total flexible-budget variance
(C) Production volume variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F370f9a6c-629f-4e6c-a08d-71bf560a53ca%2Fddebeb3a-56f6-4aba-94b2-72a9b0107012%2F5qf4ja_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 55,200 machine hours per year, which represents 27,600 units of output. Annual budgeted fixed
factory overhead costs are $276,000 and the budgeted variable factory overhead cost rate is $3.70 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 21,500 units, which took 44,200 machine hours. Actual fixed factory overhead costs for the year
amounted to $264,800 while the actual variable overhead cost per unit was $3.60.
Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each
variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole
dollar amount.)
(a) Total overhead variance
(b)
Total flexible-budget variance
(C) Production volume variance
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