The Walker Manufacturing Company uses a predetermined overhead rate of $12 per direct labor hour, consisting of $7 for variable overhead and $5 for fixed overhead. The company's normal capacity is 50,000 direct labor hours, with budgeted overhead of $600,000. In July, the actual overhead costs were $42,300 variable and $21,000 fixed. If the standard hours allowed for July's production were 5,500 hours, what is the total overhead variance? a. $3,300 F b. $3,300 U c. $2,700 F d. $2,700 U

The Walker Manufacturing Company uses a predetermined overhead rate of $12 per direct labor hour, consisting of $7 for variable overhead and $5 for fixed overhead. The company's normal capacity is 50,000 direct labor hours, with budgeted overhead of $600,000. In July, the actual overhead costs were $42,300 variable and $21,000 fixed. If the standard hours allowed for July's production were 5,500 hours, what is the total overhead variance? a. $3,300 F b. $3,300 U c. $2,700 F d. $2,700 U

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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