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3 years ago

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Wave Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours.

From the following data, calculate the total fixed overhead variance.Actual fixed overhead $ 32,000Budgeted fixed overhead $ 26,000Allocated fixed overhead $ 28,350Standard overhead allocation rate $ 6.75Standard direct labor hours per unit 2.1 DLHrActual output2,000 unitsA.$ 3,650 FB.$ 3,650 UC.$ 13,500 FD.$ 13,500 U

1 answer:

horsena [70]3 years ago

6 0

Answer:

B. $ 3,650 U

Explanation:

Wave Fashions

Actual fixed overhead $ 32,000

Budgeted fixed overhead $ 26,000

Allocated fixed overhead $ 28,350

Standard overhead allocation rate $ 6.75

Standard direct labor hours per unit 2.1 DLHr

Actual output 2,000 units

Total Fixed Overhead Variance = Budget Variance + Volume Variance

=$ 6000 Unfav - $ 2350 Fav= $ 3650 Unfavorable

Budget Variance = Actual Fixed Overhead- Budgeted Fixed Overhead= $ 32,000- $ 26,000= $ 6000 unfavorable

Volume Variance = Budgeted Fixed Overhead- Allocated Fixed Overhead

Volume Variance= $ 26000- ( Standard Fixed Overhead Rate * Standard Hours)

Volume Variance= $ 26000- ( $ 6.75 * 2.1 * 2000)

Volume Variance= $ 26000- 28350 = 2350 favorable

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Answer:

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Explanation:

A regression analysis for the provided data is performed on Microsoft Excel.

The output is attached below.

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2 years ago

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Answer:

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