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In: Accounting
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Branch Company provided the following information:...
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches
Branch Company provided the following information:
| Standard fixed overhead rate (SFOR) per direct labor hour | $5.00 | ||
| Actual fixed overhead | $305,000 | ||
| BFOH | $300,000 | ||
| Actual production in units | 16,000 | ||
| Standard hours allowed for actual units produced (SH) | 64,000 |
Required
Enter amounts as positive numbers and select Favorable (F) or Unfavorable(U).
1. Using the columnar approach, calculate the fixed overhead spending and volume variances.
| (1) | (2) | (3) |
| Spending | Volume |
2. Using the formula approach, calculate the fixed overhead spending variance.
$
3. Using the formula approach, calculate the fixed overhead volume variance.
$
4. Calculate the total fixed overhead variance.
$
Solutions
Expert Solution
| ACTUAL OVERHEAD FIXED | BUDGETED FIXED OVER HEAD | FIXED OVERHEAD COST APPLIED | ||
| (AFOH) | (BFOH) | (SH*SR) | ||
| 3,05,000.00 | 3,00,000.00 | 3,20,000.00 | ||
| (64000 Hours*5) | ||||
| Fixed Over Head spending Variance | = | AFOH-BFOH | ||
| = | 305000-300000 | |||
| = | 5,000.00 | UNFAVORABLE | ||
| Fixed Overhead production Volume | ||||
| Variance | = | BFOH-(SH*SR) | ||
| = | 300000-320000 | |||
| = | -20,000.00 | FAVORABLE | ||
| Total Fixed Overhead Variance | = | AFOH-(SH*SR) | ||
| = | 305000-320000 | |||
| = | -15,000.00 | FAVORABLE |
ekkarill92 answered 1 year agoRelated Solutions
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Branch Company provided the following information:...
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Formula Approaches
Branch Company provided the following information:
Standard fixed overhead rate (SFOR) per direct labor hour
$5.00
Actual fixed overhead
$305,000
BFOH
$300,000
Actual production in units
16,000
Standard hours allowed for actual units produced (SH)
64,000
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