Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,300 Standard direct labor hours per unit 0.2 Standard fixed overhead rate (per direct labor hour) $2.20 Budgeted fixed overhead $64,700 Actual fixed overhead costs $68,800 Actual hours worked 26,500 Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. What if 127,500 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending Variance Volume Variance

Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,300 Standard direct labor hours per unit 0.2 Standard fixed overhead rate (per direct labor hour) $2.20 Budgeted fixed overhead $64,700 Actual fixed overhead costs $68,800 Actual hours worked 26,500 Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. What if 127,500 units had actually been produced in February? What impact would that have had? Indicate what the new variances would be below. Fixed Overhead Spending Variance Volume Variance

Name: Calculating the Fixed Overhead Spending and Volume VariancesStandish
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Description: Calculating the Fixed Overhead Spending and Volume VariancesStandish Company manufactures consumer products and provided the following information for the monthof February:Units produced131,300Standard direct labor hours per unit0.2Standard fixed ov

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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