Required information Use the following information for the Quick Study below. (Algo) [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 QS 21-16 (Algo) Volume variance LO P4 Volume variance $ 29,025 $ 31,000 Volume Variance $ Compute the volume variance and identify it as favorable or unfavorable. $ 2.10 per unit 12,500 12,500 units 10,000 units
Required information Use the following information for the Quick Study below. (Algo) [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 QS 21-16 (Algo) Volume variance LO P4 Volume variance $ 29,025 $ 31,000 Volume Variance $ Compute the volume variance and identify it as favorable or unfavorable. $ 2.10 per unit 12,500 12,500 units 10,000 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
Use the following information for the Quick Study below. (Algo)
[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
QS 21-16 (Algo) Volume variance LO P4
Volume variance
$ 29,025
$ 31,000
Volume Variance
$ 2.10 per unit
$ 12,500
Compute the volume variance and identify it as favorable or unfavorable.
12,500 units
10,000 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3befaaea-bd9f-4c03-a147-b6da27e41433%2F462548de-d1a4-4336-8e47-9ea0624c9e30%2Fqz1vwck_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Quick Study below. (Algo)
[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
QS 21-16 (Algo) Volume variance LO P4
Volume variance
$ 29,025
$ 31,000
Volume Variance
$ 2.10 per unit
$ 12,500
Compute the volume variance and identify it as favorable or unfavorable.
12,500 units
10,000 units
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