Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Answer is complete but not entirely correct. Standard overhead applied Budgeted (flexible) overhead Volume variance Volume Variance Compute the volume variance and identify it as favorable or unfavorable. ›› ✓ S S $ 28,525 $ 31,620 28,525 X 12,600 X (2,400) Unfavorable ✓ $ 2.10 per unit $ 12,600 12,600 units 10,200 units
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Answer is complete but not entirely correct. Standard overhead applied Budgeted (flexible) overhead Volume variance Volume Variance Compute the volume variance and identify it as favorable or unfavorable. ›› ✓ S S $ 28,525 $ 31,620 28,525 X 12,600 X (2,400) Unfavorable ✓ $ 2.10 per unit $ 12,600 12,600 units 10,200 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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![Required information
[The following information applies to the questions displayed below.]
AirPro Corporation reports the following for this period.
Actual total overhead
Standard overhead applied
Budgeted (flexible) variable overhead rate
Budgeted fixed overhead
Predicted activity level
Actual activity level
Answer is complete but not entirely correct.
Standard overhead applied
Budgeted (flexible) overhead
Volume variance
Volume Variance
✓ S
$
Compute the volume variance and identify it as favorable or unfavorable.
$
$ 28,525
$ 31,620
28,525 X
12,600 x
(2,400) Unfavorable
$ 2.10 per unit
$ 12,600
12,600 units
10,200 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8be92463-998c-42ad-8ee7-3d0c3c81504b%2Ff37f7e63-0aee-4aef-8e07-2f68ab547731%2F7cbd1pi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
AirPro Corporation reports the following for this period.
Actual total overhead
Standard overhead applied
Budgeted (flexible) variable overhead rate
Budgeted fixed overhead
Predicted activity level
Actual activity level
Answer is complete but not entirely correct.
Standard overhead applied
Budgeted (flexible) overhead
Volume variance
Volume Variance
✓ S
$
Compute the volume variance and identify it as favorable or unfavorable.
$
$ 28,525
$ 31,620
28,525 X
12,600 x
(2,400) Unfavorable
$ 2.10 per unit
$ 12,600
12,600 units
10,200 units
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