The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products: Standard fixed overhead per direct labor hour $3.50 0.5 Standard direct labor hours per unit 2,600 $4,550.00 Budgeted production Budgeted fixed overhead costs Actual production in units Actual fixed overhead costs incurred What is Perry's fixed manufacturing overhead volume variance? OA. $875.00 favorable 3,100 $1,600.00 B. $2,950.00 unfavorable C. $875.00 unfavorable D. $2,950.00 favorable
The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products: Standard fixed overhead per direct labor hour $3.50 0.5 Standard direct labor hours per unit 2,600 $4,550.00 Budgeted production Budgeted fixed overhead costs Actual production in units Actual fixed overhead costs incurred What is Perry's fixed manufacturing overhead volume variance? OA. $875.00 favorable 3,100 $1,600.00 B. $2,950.00 unfavorable C. $875.00 unfavorable D. $2,950.00 favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products:
Standard fixed overhead per direct labor hour
$3.50
0.5
Standard direct labor hours per unit
2,600
$4,550.00
Budgeted production
Budgeted fixed overhead costs
Actual production in units
Actual fixed overhead costs incurred
What is Perry's fixed manufacturing overhead volume variance?
3,100
$1,600.00
OA. $875.00 favorable
OB. $2,950.00 unfavorable
OC. $875.00 unfavorable
O D. $2,950.00 favorable
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