Ask Question
16 October, 04:15

Given the following information for Albright Company, what was the factory overhead cost variance?

Manufacturing Costs - Actual Costs - Standard Cost at Actual Volume - Budgeted Cost

Direct materials - $80,300 - $ 76,000 - $ 71,250

Direct labor - 77,000 - 72,500 - 68,400

Factory overhead - 44,800 - 48,000 - 45,600

Total - $202,100 - $196,500 - $185,250

a. $3,200 unfavorableb. $5,600 unfavorablec. $16,850 unfavorabled. $ (5,600) favorable

+3
Answers (1)
  1. 16 October, 05:05
    0
    The correct answer is option (b) unfavorable

    Explanation:

    From the question given

    We solve for the factory overhead cost variance to know whether it is favorable or unfavorable.

    Solution

    The Total cost variance for manufacturing = Standard Cost at Actual Volume - Actual costs

    Thus,

    = 196,500-202,100

    = $5,600 unfavorable

    Therefore the overhead cost of variance is = $5,600 which is unfavorable

    Correct option is b.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Given the following information for Albright Company, what was the factory overhead cost variance? Manufacturing Costs - Actual Costs - ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers