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zheka24 [161]
3 years ago
5

Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overh

ead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 8,300 $ 8,490 Indirect labor 10,770 10,120 Fixed overhead costs: Supervision 16,110 14,540 Utilities 15,400 15,450 Factory depreciation 58,130 59,650 Total overhead cost $ 108,710 $ 108,250 The company based its original budget on 8,300 machine-hours. The company actually worked 8,260 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 8,190 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
Business
1 answer:
timofeeve [1]3 years ago
4 0

Answer:

$1,188 unfavorable

Explanation:

Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process.

$89,640 ÷ 8,300 machine hours

= $10.8 per machine hours

= $89,640 - ( 8,190 machine hours * $10.8 per machine hours )

= $89,640 - $88,452

= $1,188 unfavorable

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