What is the amount of the Factory OH Volume Variance, given the following info: Actual production = 5,000 units Actual Costs = $202,500.00 for variable FOH + $60,000.00 for fixed FOH Budgeted Costs = $250,000 (standard hours for 5,000 units produced of 25,000 hours * standard FOH rate of $10.00) The standard OH rate = $10.00 per DL hour ($8.00 for variable FOH and $2.00 for fixed FOH) based on 100% capacity of 30,000 DL hours Group of answer choices $12,500.00 favorable $12,500.00 unfavorable $10,000.00 favorable $10,000.00 unfavorable
What is the amount of the Factory OH Volume Variance, given the following info: Actual production = 5,000 units Actual Costs = $202,500.00 for variable FOH + $60,000.00 for fixed FOH Budgeted Costs = $250,000 (standard hours for 5,000 units produced of 25,000 hours * standard FOH rate of $10.00) The standard OH rate = $10.00 per DL hour ($8.00 for variable FOH and $2.00 for fixed FOH) based on 100% capacity of 30,000 DL hours Group of answer choices $12,500.00 favorable $12,500.00 unfavorable $10,000.00 favorable $10,000.00 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the amount of the Factory OH Volume Variance, given the following info:
Actual production = 5,000 units
Actual Costs = $202,500.00 for variable FOH + $60,000.00 for fixed FOH
Budgeted Costs = $250,000 (standard hours for 5,000 units produced of 25,000 hours * standard FOH rate of $10.00)
The standard OH rate = $10.00 per DL hour ($8.00 for variable FOH and $2.00 for fixed FOH) based on 100% capacity of 30,000 DL hours
Group of answer choices
$12,500.00 favorable
$12,500.00 unfavorable
$10,000.00 favorable
$10,000.00 unfavorable
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