The following information is available from the Terry Company: Actual total factory overhead cost incurred$ 28,000Actual fixed overhead cost incurred$ 12,100Budgeted fixed overhead expenses$ 14,000Actual direct labor hours (DLH) worked4,800Standard DLHs for this period’s production (output)5,100Standard variable overhead rate per DLH$ 3.00Standard fixed overhead rate per DLH$ 2.50 What is the fixed overhead production volume variance for Terry Company for the period?

Formula: Applied Fixed overhead = Standard rate x Standard hours.

Answered: The following information is available…

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 11P: Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs....

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The following information is available from the Terry Company:

Actual total factory overhead cost incurred	$ 28,000
Actual fixed overhead cost incurred	$ 12,100
Budgeted fixed overhead expenses	$ 14,000
Actual direct labor hours (DLH) worked	4,800
Standard DLHs for this period’s production (output)	5,100
Standard variable overhead rate per DLH	$ 3.00
Standard fixed overhead rate per DLH	$ 2.50