Question

6. If the actual variable factory overhead cost is $50,000 and the budget variable cost is...

6. If the actual variable factory overhead cost is $50,000 and the budget variable cost is $40,000 what is the variance? If the actual fixed factory overhead costs $100,000 and the budget fixed cost is $75,000 what is the variance? If the variances are not favorable what can management do to change them to variable?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Variable Factory overhead variance = Budgeted Variable factory overhead - Actual Variable Factory overhead

= 40000 - 50000 = $10000 unfavourable.

2. Fixed factory overhead variance = Budgeted fixed factory overhead - Actual fixed factory overhead

= 75000 - 100000 = $ 25000 unfavourable

3. Unfavourable variances can be reduced by taking the following measures:

a) Preparing budget on more realistic lines.

b) Acquiring skilled labour or Improving the Skills of the current labour.

c) Using machines which take less processing time and gives the quality product.

d) Changing the current product and its characteristics for attracting new customers

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
6. If the actual variable factory overhead cost is $50,000 and the budget variable cost is...
6. If the actual variable factory overhead cost is $50,000 and the budget variable cost is $40,000 what is the variance? If the actual fixed factory overhead cost $100,000 and the budget fixed cost is $75,000 what is the variance? If the variances are not favorable what can management do to change them to variable?
Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 38,000 hours of...
Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 38,000 hours of production in the Weaving Department. The department has a full capacity of 51,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $117,800 Fixed overhead 81,600 Total $199,400 The actual factory overhead was $201,800 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard...
Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 48,000 hours of...
Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of 64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $163,200 Fixed overhead 115,200 Total $278,400 The actual factory overhead was $281,700 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
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 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.90 8,700...
Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 38,000 hours of...
Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 38,000 hours of production in the Weaving Department. The department has a full capacity of 51,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $133,000 Fixed overhead 91,800 Total $224,800 The actual factory overhead was $227,500 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard...
The following data relate to factory overhead cost for the production of 8,000 computers: Actual: Variable...
The following data relate to factory overhead cost for the production of 8,000 computers: Actual: Variable factory overhead $223,100 Fixed factory overhead 94,250 Standard: 8,000 hrs. at $36 288,000 If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $324,250, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 per hour....
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead $297,100 Fixed factory overhead 68,750 Standard: 7,000 hrs. at $50 350,000 If productive capacity of 100% was 11,000 hours and the total factory overhead cost budgeted at the level of 7,000 standard hours was $375,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 4,000 computers: Actual: Variable factory overhead $65,000 Fixed factory overhead 25,500 Standard: 4,000 hrs. at $21 84,000 If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $92,500, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead $98,500 Fixed factory overhead 38,500 Standard: 7,000 hrs. at $18 126,000 If productive capacity of 100% was 11,000 hours and the factory overhead cost budgeted at the level of 7,000 standard hours was $140,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 3,000 computers: Actual: Variable factory overhead $122,200 Fixed factory overhead 35,000 Standard: 3,000 hrs. at $49 147,000 If productive capacity of 100% was 5,000 hours and the total factory overhead cost budgeted at the level of 3,000 standard hours was $161,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT