Question
In: Accounting
Holl Corporation has provided the following data for November. Denominator level of activity 5,500 machine-hours Budgeted...
Holl Corporation has provided the following data for November. Denominator level of activity 5,500 machine-hours Budgeted fixed manufacturing overhead costs $ 68,750 Standard machine-hours allowed for the actual output 5,800 machine-hours Actual fixed manufacturing overhead costs $ 67,650 Required: a. Compute the budget variance for November. b. Compute the volume variance for November. (Input all amounts as positive values.)
Budget Variance: ______ ______
Volume Variance: _______ _______
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Expert Solution
Answer :-
Given date tabulated as follows :-
| Particulars | Budgeted | Actual |
| Fixed manufacturing Overhead ($) | $68,750 | $67,650 |
| Machine hours | 5,500 | 5,800 |
Computation of budget variance for the November month.
Fixed overhead Budget variance = Budgeted fixed overhead - actual fixed overhead
=$68,750 - $67,650
= $1,100 (F).
# Calculation of volume variance :-
Fixed over head volume variance = applied fixed overhead - budgeted fixed overhead.
Standard fixed over head rate per hour = Budgeted fixed over head ÷ Standard machine hours
= $68,750 ÷ 5500 hours
= $ 12.50 per hour.
Applied fixed overhead = standaard fixed over head rate per hour × Actual machine hours
= $12.50 per hour × 5800 hours
= $ 72,500.
Budgeted fixed overhead = $68750. (Given)
Fixed over head volume variance = $72,500 - $68,750
= $3,750 favourable
# Budgeted fixed overhead volume variance =
$3,750 favourable.
----The End --
ekkarill92 answered 1 month agoRelated Solutions
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Budgeted fixed manufacturing overhead costs
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materials $
80,000
WIP 200,000
Finished
goods 270,000
Total $550,000
Required:
a. Determine the budgeted factory overhead rate
per machine-hour.
b. Compute the over/underapplied overhead.
c. Prepare the journal entry to dispose of the
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Raw
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$
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process
$
18,800
$
11,800
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Goods
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49,800
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57,800
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93,800
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Finished Goods $ 49,100 $ 57,100 Additional information: Raw
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month of November:
Beginning
Ending
Raw materials
$
26,500
$
22,500
Work in process
$
18,500
$
11,500
Finished Goods
$
49,500
$
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Raw materials purchases
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73,500
Direct labor cost
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$
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Work in process
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$
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Finished Goods
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