**Thomas Textiles Corporation Budget Analysis for November**Thomas Textiles Corporation commenced November with a budget structured for 48,000 hours of production within the Weaving Department. This department holds a maximum capacity of 64,000 hours under regular business circumstances. At the start of November, the anticipated overhead expenses based on these planned volumes were detailed as follows:- **Variable Overhead:** $86,400 - **Fixed Overhead:** $57,600 - **Total Overhead:** $144,000 For November, the actual factory overhead totaled $145,700. It was noted that the actual fixed factory overhead aligned with the budgeted amount. Throughout November, the Weaving Department achieved **standard hours at an actual production volume of 50,000 hours**.**Objective:** Calculate both the variable factory overhead controllable variance and the fixed factory overhead volume variance. Note that a favorable variance should be denoted with a negative sign, whereas an unfavorable variance should be identified as a positive number. For all interim calculations, round to the nearest cent if necessary.**Calculations:**a. **Variable Factory Overhead Controllable Variance:** $\_\_\_\_\_\_ b. **Fixed Factory Overhead Volume Variance:** $\_\_\_\_\_\_Please make sure to perform the calculations using the provided data to determine the variances.

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Description: **Thomas Textiles Corporation Budget Analysis for November**Thomas Textiles Corporation commenced November with a budget structured for 48,000 hours of production within the Weaving Department. This department holds a maximum capacity of 64,000 hour

Introduction: Variance is the amount of difference between the actual cost incurred and the…

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Thomas Textiles Corporation began November with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of 64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $86,400 Fixed overhead 57,600 Total $144,000 The actual factory overhead was $145,700 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard hours at actual production volume of 50,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Variable factory overhead controllable variance: $ b. Fixed factory overhead volume variance: $

Thomas Textiles Corporation began November with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of 64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $86,400 Fixed overhead 57,600 Total $144,000 The actual factory overhead was $145,700 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard hours at actual production volume of 50,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Variable factory overhead controllable variance: $ b. Fixed factory overhead volume variance: $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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