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Licemer1 [7]
3 years ago
15

Surfer sam company produced 4,000 units of product that required 2.5 standard hours per unit. the standard fixed overhead cost p

er unit is $0.80 per hour at 10,500 hours, which is 100% of normal capacity. determine the fixed factory overhead volume variance.
Business
1 answer:
Svet_ta [14]3 years ago
3 0

The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)

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In the context of employee evaluation, most companies require that managers give formal feedback through periodic _____, usually
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Kokomochi is considering the launch of an advertising campaign for its latest dessert​ product, the Mini Mochi Munch. Kokomochi
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Answer:

Check Explanation.

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Note that the amount are in millions(dollar).

Year one: the sales of Mini Mochi Munch = $ 8.8 million = 8.8, sales of other products = $ 1.7 million. Hence, the gross profit = (8.8 × 38%) + (8.8 × 23%) = 5.368.

The selling, general and administrative expenses = 4.9 and the depreciation is zero.

Then, the EBIT = the gross profit -selling, general and administrative expenses - Depreciation.

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incremental earnings= EBIT - Less income tax at 38%.

incremental earnings = 0.468 - 0.17784.

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Then, the EBIT = the gross profit -selling, general and administrative expenses - Depreciation.

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incremental earnings= EBIT - Less income tax at 38%.

incremental earnings = −0.752 - −0.28576 = −1.03776.

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