
Concept explainers
(a)
Concept Introduction:
The variable factory
The fixed factory overhead volume variance is the difference between the standard fixed factory overhead at actual production and at
The sum of variable overhead controlled variance and fixed factory overhead volume variance is the
The variable factory overhead controlled variance.

Answer to Problem 13.28E
The variable factory overhead controlled variance is
Explanation of Solution
In the given case following data is given:
Actual factory overhead cost
Budgeted variable factory overhead cost
Budgeted fixed factory overhead cost
Standard hours for
Standard hours for actual production
Budgeted hours
Budgeted variable factory overhead at
Now, the calculation of variable overhead rate is as follows:
Now, calculation of actual variable factory overhead is as follows:
Therefore, calculation of budgeted variable factory overhead is as follows:
(b)
Concept Introduction:
The variable factory overhead controlled variance is difference between the budgeted and actual variable factory overhead.
The fixed factory overhead volume variance is the difference between the standard fixed factory overhead at actual production and at
The variable and fixed factory overhead controlled variance is that variance which does not change with change in volume.
The fixed factory overhead volume variance.

Answer to Problem 13.28E
The fixed factory overhead volume variance is
Explanation of Solution
In the given case following data is given:
Budgeted fixed factory overhead cost
Standard hours for
Standard hours for actual production
Budgeted hours
Calculation of Fixed factory overhead rate is as follows:
Now, the calculation of fixed factory overhead volume variance is given below:
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Chapter 13 Solutions
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