The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.70 per hour Variable overhead 3 hours per unit @ $1.97 per hour Actual Costs Total variable cost, $18,200 Total fixed cost, $8,100 The amount of the fixed factory overhead volume variance is

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Business

Leonel York

19 September, 08:33

The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.70 per hour Variable overhead 3 hours per unit @ $1.97 per hour Actual Costs Total variable cost, $18,200 Total fixed cost, $8,100 The amount of the fixed factory overhead volume variance is

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Sherlyn Mack · Answer 1

overhead volume variance = $ 1970

Explanation:

GIVE dа ta:

fixed overhead = $8,100

variable overhead = $18,200

standard hours for production = 3000*3 = 9000

standard cost per hour = 1.97+070

The total factory overhead volume variance = Total actual OH (fixed + Variable) - Standard OH (variable + Fixed)

= ($ 18,200 + $ 8,100) - (Standard hours for actual production x Standard Cost per hour)

= $ 26,000 - [ (3000 x 3) hours x ($ 1.97 + $ 0.70) per hour]

= $ 26,000 - (9000 x 1.67)

= $ 26,000 - $ 24,030

= $ 1970

= $ 1970