The following information is available from the Terry Company: Actual total factory overhead cost incurred $39,000 Actual fixed overhead cost incurred $ 11,000 Budgeted fixed overhead expenses $ 17,000 Actual direct labor hours (DLH) worked 6,800 Standard DLHs for this period's production (output) 3,600 Standard variable overhead rate per DLH $ 3.00 Standard fixed overhead rate per DLH $ 2.50 The total overhead flexible-budget (FB) variance for the period, to the nearest dollar, is:
The following information is available from the Terry Company: Actual total factory overhead cost incurred $39,000 Actual fixed overhead cost incurred $ 11,000 Budgeted fixed overhead expenses $ 17,000 Actual direct labor hours (DLH) worked 6,800 Standard DLHs for this period's production (output) 3,600 Standard variable overhead rate per DLH $ 3.00 Standard fixed overhead rate per DLH $ 2.50 The total overhead flexible-budget (FB) variance for the period, to the nearest dollar, is:
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
![The following information is available from
the Terry Company: Actual total factory
overhead cost incurred $39,000 Actual
fixed overhead cost incurred $ 11,000
Budgeted fixed overhead expenses $
17,000 Actual direct labor hours (DLH)
worked 6,800 Standard DLHs for this
period's production (output) 3,600
Standard variable overhead rate per DLH $
3.00 Standard fixed overhead rate per DLH
$ 2.50 The total overhead flexible-budget
(FB) variance for the period, to the nearest
dollar, is:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F951fc02d-8cbe-434a-855c-ff90dea82e83%2F684c8054-cddf-4700-a525-fc8937210be9%2Fzz990f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is available from
the Terry Company: Actual total factory
overhead cost incurred $39,000 Actual
fixed overhead cost incurred $ 11,000
Budgeted fixed overhead expenses $
17,000 Actual direct labor hours (DLH)
worked 6,800 Standard DLHs for this
period's production (output) 3,600
Standard variable overhead rate per DLH $
3.00 Standard fixed overhead rate per DLH
$ 2.50 The total overhead flexible-budget
(FB) variance for the period, to the nearest
dollar, is:
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education