
Concept explainers
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
To Prepare:
The factory overhead cost variance report.

Answer to Problem 13.7P
The net controllable variance is
Explanation of Solution
Seabury Inc | ||||
For the month of October | ||||
Productive capacity for the month of ( | ||||
Actual production for the month | ||||
Particulars | Budgeted (at actual production) | Actual | Variance | |
Favorable | Unfavorable | |||
Variable factory overhead cost: | ||||
Indirect factory labor (W.N. | ||||
Power and light ((W.N. | ||||
Indirect Material ((W.N. | ||||
Total variable factory overhead cost | ||||
Fixed factory overhead costs: | ||||
Supervisory salaries | ||||
Depreciation | ||||
Insurance and property taxes | ||||
Total fixed factory overhead costs | ||||
Total factory overhead cost | ||||
Total controllable variances | ||||
Net controllable variance-favorable |
Working notes:
Indirect factory wages
Power and light
Indirect material
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Chapter 13 Solutions
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