Budgeted fixed overhead is 300,000 per quarter and overhead rates are computed based on DL hrs. For 6-month period, the actual fixed overhead is 560,000 and actual VOH is 30,000. Each product requires 10 yards of material and 4 DL hours. Assuming that standard variable cost per unit of product is P 10; actual and standard direct labor hours are 20,000 DL hrs and 22, 000 DL hrs, respectively, what is the budget variance? Choose from the following choices of answer: 230,000 favorable 230,000 unfavorable 65,000 favorable 120,000 favorable None of the above

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Budgeted fixed overhead is 300,000 per quarter and overhead rates are computed based on DL hrs. For 6-month period, the actual fixed overhead is 560,000 and actual VOH is 30,000. Each product requires 10 yards of material and 4 DL hours. Assuming that standard variable cost per unit of product is P 10; actual and standard direct labor hours are 20,000 DL hrs and 22, 000 DL hrs, respectively, what is the budget variance?

Choose from the following choices of answer:

  • 230,000 favorable
  • 230,000 unfavorable
  • 65,000 favorable
  • 120,000 favorable
  • None of the above
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