Stirk Company applies fixed overhead at the rate of $1.70 per unit. For May, budgeted fixed...

Stirk Company applies fixed overhead at the rate of $1.70 per unit. For May, budgeted fixed overhead was $690,200. The production volume variance amounted to $5,100 unfavorable, and the price variance was $15,500 favorable.

Required:

a. What was the budgeted volume in units for May?

b. What was the actual volume of units produced in May?

c. What was the actual fixed overhead incurred for May?

Solutions

Expert Solution


Answer = 1
	Calculation of Budget volume in units for May

	Bodgeted volume = Budgeted Fixed overhead / Budgeted fixed overhead rate
	Bodgeted volume = $ 690,200 / $ 1.70 Per unit
	Bodgeted volume = 406,000 Units

	Answer = $ 406,000 Units

Answer = 2
	Calculation of actual volume in units in may

	Actual Volume in units = ( Budgeted fixed overhead + Volume Variances ) / Budgeted fixed overhear rate
	Actual Volume in units = ($ 690,200 + $ 5100) / $ 1.70
	Actual Volume in units = $ 695,300 / $ 1.70
	Actual Volume in units = 409,000 Units

	Answer = $ 409,000 Units

Answer = 3
	Calculation of actual fixed overhead incurred for May

	Actual Fixed overhead = Budgeted Fixed overhead + Price Variances
	Actual Fixed overhead = $ 690,200 + $ 15,500
	Actual Fixed overhead = $ 705,700

	Answer = $ 705,700

ekkarill92 answered 1 year ago

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