Summit Manufacturing uses a standard costing system. Below is the March overhead budget: Item Value Standard DLH at full capacity 25,000 hrs. Variable factory overhead Fixed factory overhead $75,000 $125,000 Total factory overhead per DLH $8.00 Actual for March: ⚫ Direct labor hours worked: 23,000 hrs. Total factory overhead: $196,000 ⚫ Standard DLH for actual output: 22,500 hrs. What is the controllable (budget) variance for March?

Summit Manufacturing uses a standard costing system. Below is the March overhead budget: Item Value Standard DLH at full capacity 25,000 hrs. Variable factory overhead Fixed factory overhead $75,000 $125,000 Total factory overhead per DLH $8.00 Actual for March: ⚫ Direct labor hours worked: 23,000 hrs. Total factory overhead: $196,000 ⚫ Standard DLH for actual output: 22,500 hrs. What is the controllable (budget) variance for March?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 15E: Calculating factory overhead The standard capacity of a factory is 8,000 units per month. Cost and...

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Calculating factory overhead The standard capacity of a factory is 8,000 units per month. Cost and production data follow: Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.
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