f productive capacity of 100% was 20,000 hours and the total factory overhead cost budgeted at the level of 19,500 standard hour
s was $394,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $8.00 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
1 answer:
Answer:
Controllable Variance = $6,000 Unfavorable
Volume Variance = $4000 Unfavorable
Factory overhead cost variance = $10,000 Unfavorable
Explanation:
Controllable Variance = (Budgeted Factory Variable Overhead - Actual Factory Variable Overhead)
= ($234,000 - $240,000)
= $6,000 Unfavorable
Budgeted Factory Variable Overhead = ($394,000 - $160,000)
= $234,000
Volume Variance = (Standard Hours for Actual unit Produced - Standard Hour for normal Capacity) Fixed Factory Overhead)
=(19,500-20,000) × $8
= $4,000 Unfavorable
Controllable Variance = $6,000 Unfavorable
Volume Variance $4000 Unfavorable
Factory overhead cost variance = Controllable Variance + Volume Variance
= $6,000 + $4,000
= $10,000 Unfavorable
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Answer: In a majority vote, this proposal will most likely be accepted.
Explanation:
The cost of the proposed public goods is $1000, which will be shared equally among the 5 people. So, per person share on the provision of public good will be,
Since, Abby, Ben and Clara value the good more than the cost they will vote in favor of the provision. But Joe and Matt value it less than the cost so they will vote against the provision.
Value to Abby is $220 which is greater than $200.
Value to Ben is $210 which is greater than $200.
Value to Clara is $210 which is greater than $200.
Value to Joe is $180 which is less than $200.
]Value to Matt is $120 which is less than $200.
So since 3 people out of 5 vote in favor of the proposal, the public good will be provided.