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 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?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

i. Variable factory overhead variance

= Actual variable factory overhead - Budgeted variable factory overhead

=$50,000 - $40,000

=$10,000 Unfavorable

ii. Fixed factory overhead variance

= Actual fixed factory overhead cost - Budgeted fixed overhead cost

=$100,000 - $75,000

=$25,000 Unfavorable

iii. Management Action:

It drag the attention of the management towards fixing the problem.Unfavorable variance can alert management that the company's profit will be less than expected. So that as soon as variance is identified management will fix the problem as soon as possible.

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 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?
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...
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...
The following data relate to factory overhead cost for the production of 15,000 computers: Actual: Variable...
The following data relate to factory overhead cost for the production of 15,000 computers: Actual: Variable factory overhead $240,000 Fixed factory overhead 160,000 Standard: 19,500 hrs. at $20 390,000 If productive capacity of 100% was 20,000 hours and the total factory overhead cost budgeted at the level of 19,500 standard hours was $394,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $8.00 per hour....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT