Sheffield Company uses a standard cost system. Indirect costs were budgeted at $210,900 plus $12 per direct labour hour. The overhead rate is based on 11,100 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead (a) x Your answer is incorrect. 9,330 11.100 $188,400 $183,500 Calculate the fixed overhead production volume variance Fixed overhead production volume variance S 22500 Favourable
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.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
