Answered

Find accurate and reliable answers to your questions on IDNLearn.com. Discover comprehensive answers from knowledgeable members of our community, covering a wide range of topics to meet all your informational needs.

odarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,480 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month

Sagot :

Answer:

$144 unfavorable

Explanation:

The computation of the overall fixed manufacturing overhead volume variance for the month is shown below:

But before that following calculations need to be done

Budgeted manufacturing overhead is

= 6600 × $1.20  

= $7,920

And,

Manufacturing overhead applied is

= Standard hours × Predetermined overhead rate

= 6480 × $1.20 = $7,776

So, fixed manufacturing overhead volume variance is

= Fixed overhead applied - budgeted fixed overhead

= $7,776 - $7,920

= $144 unfavorable

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! IDNLearn.com is dedicated to providing accurate answers. Thank you for visiting, and see you next time for more solutions.