Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,900 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 0.2 $2.30 $65,000 $68,600 26,750
Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,900 Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 0.2 $2.30 $65,000 $68,600 26,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced
131,900
Standard direct labor hours per unit
0.2
Standard fixed overhead rate (per direct labor hour)
$2.30
Budgeted fixed overhead
$65,000
Actual fixed overhead costs
$68,600
Actual hours worked
26,750
Required:
1. Calculate the fixed overhead spending variance using the formula approach.
Unfavorable ✓
2. Calculate the volume variance using the formula approach.
Unfavorable ✓
3. What if 127,700 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
Unfavorable ✓
Volume Variance
Unfavorable ✓
6,258 X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education