Answer:
Option 1st is correct. i.e $ 208,000.
| Fixed overhead volume variance=Budgeted Overhead - Fixed Overhead applied | |
| -$8,000=$200,000 - FOH applied | |
| FOH applied =$200,000-8,000 | |
| = $208,000 |
QUESTION 21 Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If...
12. At the beginning of October, fixed manufacturing overhead was budgeted at $200,000 end of October, it was found that the fixed overhead volume variance was $8,000 favorable and the fixed overhead budget variance was $6,000 unfavorable. Given the situation, which of the following is false?[ A) The Cost of Goods Sold account will be increased as a result of closing entries. B) The applied fixed overhead during the month was $208,000. C) The actual fixed overhead occurred in the...
Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours. Information for the month of April appears below. Prado's expected to produce and sell 500 units for the month. Budgeted fixed overhead costs $240,000 Budgeted direct labor hours ÷ 12,000 Standard cost per direct labor hour $ 20 Standard direct labor hours per unit 18 Actual production 520 units Actual fixed overhead costs $210,000 Required: Calculate the fixed overhead spending variance and production volume variance. Clearly...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 189,000 lbs. at $6.00 187,100...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget.
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
25,000
Power
6,800
Maintenance
5,200
Total variable costs
58,000
Fixed overhead costs
Rent of factory building
24,000
Depreciation—Machinery
28,000...
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units)...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels Overhead Budget 80% Production in units 10,000 Standard direct labor hours 25,000 Budgeted overhead Variable overhead costs Indirect materials $ 18,000 Indirect labor 25,000 Power 5,000 Maintenance 2,000 Total variable costs 50,000 Fixed overhead costs Rent of factory building 18,000 Depreciation—Machinery...
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Better Fitness Gear applies overhead on the basis of direct labor hours. Five direct labor hours are required for each unit produced. Planned production for the period was set at 8,000 units. Budgeted fixed manufacturing overhead for the period is budgeted at $20,000 and variable manufacturing overhead is budgeted at $100,000. The 48,500 hours worked during the period resulted in production of 9,500 units. Actual manufacturing overhead cost incurred was $156,000. Required: Calculate the three overhead variances: a. Total Spending...
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Standard machine hours per unit of output 4 hours Standard variable-overhead rate per machine hour 8.00 Actual variable-overhead rate per machine hour Actual machine hours per unit of output Budgeted fixed overhead |Actual fixed overhead Budgeted production in units Actual production in units Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Total actual overhead Total budgeted overhead (flexible budget) Total budgeted overhead (static budget) Total applied overhead 9.00 3 S 50,000 25,000 24,000 72,000 Unfavorable 192,000...