In: Accounting
Last year, ABC Company produced 19,000 units of Product X. The fixed overhead budget was $160,000 and the expected level of production for the year was 20,000 units. The actual fixed overhead costs were $162,000.
Required: Be sure to label each variance as F – favorable or U – unfavorable.
1. What is the predetermined fixed overhead rate for the year?
2. What was the fixed overhead budget or spending variance?
3. What is the fixed overhead volume variance?