Answer:
the fixed factory overhead volume variance is $1,180 unfavorable
Explanation:
The computation of the fixed factory overhead volume variance is shown below
= (Actual activity - normal activity)× fixed overhead cost per unit
= (3,400 × 1.5 - 5,500) × $2.95
= (5,100 - 5,500) × 2.95
= 400 × 2.95
= $1,180 unfavorable
Hence, the fixed factory overhead volume variance is $1,180 unfavorable
Simply we applied the above formula so that the correct amount could come
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Answer and Explanation:
Adjusting entries is to made for recording all types of expenses and revenues in a correct manner. There are some transactions such as accrued interest or revenue that could be realize at the time when the entries are depend upon the documents and transactions should be recorded. It is to be made in order to prepared the correct financial statements by considering the prepaid expenses that are adjusted, depreciation expense, unearned revenue etc
