Standard hours allowed for the actual output 3,850 DLHs Actual total variable manufacturing overhead cost $ 29,445 Actual total fixed manufacturing overhead cost $47,995 The fixed manufacturing overhead budget variance for the period is closest to: $615 F $1,478 U $450 U $2,120 U

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Please do not give solution in image format thanku
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of
activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity
Overhead costs at the denominator activity level:
Variable overhead cost
$ 28,490
Fixed overhead cost
$ 47,545
The following data pertain to operations for the most recent period:
Actual hours
3,900
DLHs
Standard hours allowed for the actual output 3,850
Actual total variable manufacturing overhead cost $ 29,445
Actual total fixed manufacturing overhead cost $ 47,995
The fixed manufacturing overhead budget variance for the period is closest to:
$615 F
$1,478 U
$450 U
$2,120 U
3,700
DLHs
DLHs
Transcribed Image Text:A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity Overhead costs at the denominator activity level: Variable overhead cost $ 28,490 Fixed overhead cost $ 47,545 The following data pertain to operations for the most recent period: Actual hours 3,900 DLHs Standard hours allowed for the actual output 3,850 Actual total variable manufacturing overhead cost $ 29,445 Actual total fixed manufacturing overhead cost $ 47,995 The fixed manufacturing overhead budget variance for the period is closest to: $615 F $1,478 U $450 U $2,120 U 3,700 DLHs DLHs
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education