Question

In: Accounting

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 2 years ago
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