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Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours Variance favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced $173,100 (174,800) 304,000 75,200 hrs. (76,000) $(1,700)

Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours Variance favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced $173,100 (174,800) 304,000 75,200 hrs. (76,000) $(1,700)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Fixed factory overhead Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours. Variance-favorable. $173,100 (174,800) 125,900 304,000 Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Favorable/Unfavorable Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance 75,200 hrs. (76,000) 800 hrs. x $4 1000 Amount $(1,700) 3,200 $1,500
Transcribed Image Text:Fixed factory overhead Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours. Variance-favorable. $173,100 (174,800) 125,900 304,000 Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Favorable/Unfavorable Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance 75,200 hrs. (76,000) 800 hrs. x $4 1000 Amount $(1,700) 3,200 $1,500
The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000 units of product are as follows: Actual: Variable factory overhead $173,100 Fixed factory overhead 125,900 Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) 304,000 Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours Variance-favorable $173,100 (174,800) Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using minust sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Favorable/Unfavorable Variable Factory Overhead Controllable Variance 75,200 hrs. (76,000) 800 hrs. x $4 $(1,700) Amount 3,200 $1,500
Transcribed Image Text:The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000 units of product are as follows: Actual: Variable factory overhead $173,100 Fixed factory overhead 125,900 Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) 304,000 Productive capacity at 100% of normal was 75,200 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours Variance-favorable $173,100 (174,800) Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using minust sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Favorable/Unfavorable Variable Factory Overhead Controllable Variance 75,200 hrs. (76,000) 800 hrs. x $4 $(1,700) Amount 3,200 $1,500
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