The standard costs and actual costs for factory overhead for the manufacture of 2,500 unitsactual production are as follows:Standard CostsFixed overhead (based on 10,000 hours)3 hours 5.80 per hourVariable overhead3 hours@ $2.00 per hourActual CostsTotal variable cost, $18,000Total fixed cost, $8,000The amount of the total factory overhead cost variance is:The amount of the factory overhead controllable variance is:The amount of the factory overhead volume variance is:

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Description: The standard costs and actual costs for factory overhead for the manufacture of 2,500 unitsactual production are as follows:Standard CostsFixed overhead (based on 10,000 hours)3 hours 5.80 per hourVariable overhead3 hours@ $2.00 per hourActual Costs

Standard cost is a predetermined cost that a company expects to incur during the production of goods…

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Accounting

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units actual production are as follows Standard Costs Fixed overhead (based on 10,000 hours)3 hours Variable overhead 3 hours 5.80 per hour $2.00 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the total factory overhead cost variance is The amount of the factory overhead controllable variance is The amount of the factory overhead volume variance is:

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units actual production are as follows Standard Costs Fixed overhead (based on 10,000 hours)3 hours Variable overhead 3 hours 5.80 per hour $2.00 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the total factory overhead cost variance is The amount of the factory overhead controllable variance is The amount of the factory overhead volume variance is:

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 12P: The standard specifications for an electric motor manufactured by XYZ Electric Co. follow: Factory...

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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.

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The standard costs and actual costs for factory overhead for the manufacture of 2,500 units
actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours)3 hours 5.80 per hour
Variable overhead
3 hours@ $2.00 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of the total factory overhead cost variance is:
The amount of the factory overhead controllable variance is:
The amount of the factory overhead volume variance is:

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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