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Thomas Textiles Corporation began November with a budget for 41,000 hours of production in the Weaving Department. The department has a full capacity of 55,000 hours under normal The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $114,800 Fixed overhead 82,500 Total $197,300

Thomas Textiles Corporation began November with a budget for 41,000 hours of production in the Weaving Department. The department has a full capacity of 55,000 hours under normal The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $114,800 Fixed overhead 82,500 Total $197,300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Performance Eval - Variances:

Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 41,000 hours of production in the Weaving Department. The department has a full capacity of 55,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $114,800 Fixed overhead 82,500 Total $197,300 The actual factory overhead was $199,700 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard hours at actual production volume of 43,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. а. Variable factory overhead controllable variance: $ -3,200 Favorable b. Fixed factory overhead volume variance: $ 3,930 Unfavorable
Transcribed Image Text:Factory Overhead Cost Variances Thomas Textiles Corporation began November with a budget for 41,000 hours of production in the Weaving Department. The department has a full capacity of 55,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows: Variable overhead $114,800 Fixed overhead 82,500 Total $197,300 The actual factory overhead was $199,700 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard hours at actual production volume of 43,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. а. Variable factory overhead controllable variance: $ -3,200 Favorable b. Fixed factory overhead volume variance: $ 3,930 Unfavorable
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