Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours Budgeted and actual overhead costs for the most recent month appea below Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Factory depreciation Total overhead cost Original Budget $ 7,400 10,680 Actual Costs $ 7,590 10,030 15,210 14,450 14,500 14,550 59,090 59,800 $ 106,800 $ 106,420 The company based its original budget on 7400 machine-hours. The compeny actually worked 7.360 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7.290 machine-hours. Whet was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places)
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours Budgeted and actual overhead costs for the most recent month appea below Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Factory depreciation Total overhead cost Original Budget $ 7,400 10,680 Actual Costs $ 7,590 10,030 15,210 14,450 14,500 14,550 59,090 59,800 $ 106,800 $ 106,420 The company based its original budget on 7400 machine-hours. The compeny actually worked 7.360 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7.290 machine-hours. Whet was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours Budgeted and actual overhead costs for the most recent month appear
below
Variable overhead costs:
Supplies
Indirect labor
Fixed overhead costs:
Supervision
Utilities
Factory depreciation
Total overhead cost
Multiple Choice
$1,224 Unfavorable
$1,320 Favorable
$1.224 Favorable
Original
Budget
The company based its original budget on 7400 machine-hours. The company actually worked 7.360 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 7,290 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2
decimal places.)
$1,220 Unfavorab
$ 7,400
10,680
Actual
Costs
$ 7,599
10,030
15,210
14,450
14,500
14,550
59,090
59,800
$ 106,880 $ 106,420
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