FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following data is given for the Bahia Company:
Budgeted production (at 100% of normal capacity) | 1,049 units |
Actual production | 917 units |
Materials: | |
Standard price per pound | $1.94 |
Standard pounds per completed unit | 10 |
Actual pounds purchased and used in production | 8,895 |
Actual price paid for materials | $18,235 |
Labor: | |
Standard hourly labor rate | $14.99 per hour |
Standard hours allowed per completed unit | 4.4 |
Actual labor hours worked | 4,722.55 |
Actual total labor costs | $72,019 |
Actual and budgeted fixed overhead | $1,108,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $132,231 |
Overhead is applied on standard labor hours. |
Round your final answer to the nearest dollar. Do not round interim calculations.
The fixed factory overhead volume variance is
a.$139,424 unfavorable
b.$139,424 favorable
c.$27,326 unfavorable
d.$27,326 favorable
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