Question

Ctual total factory overhead incurred $ 28,175 Standard factory overhead: Variable overhead $ 3.10 per unit produced Fixed overhead ($12,000/12,000 predicted units to be produced) $ 1 per unit Predicted units produced 12,000 units Actual units produced 9,800 units Compute the controllable overhead variance for November. (Round cost per unit to 2 decimal places).

Answer 1

Answer:

Total controllable overhead variance                             $                                                                                  

Standard total overhead cost ($4.10 x 9.800 units) = 40,180

Less: Actual total overhead incurred                        =  28.175

Total controllable overhead cost                               12,005(F)

Standard total overhead cost per unit = $3.10 + $1.00 = $4.10                                                                                                                                  

Explanation:

Total controllable overhead variance is the difference between         standard total overhead cost and actual total overhead incurred. The standard total overhead cost is the product of standard total overhead cost per unit and actual units produced.