Variable overhead 5540,000 Fixed overhead 240,000 Total $780,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Factory overhead cost variances

Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:

 

Variable overhead 5540,000 Fixed overhead 240,000 Total $780,000 The actual factory overhead was $782,000 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 92,500 hours.

a. Determine the variable factory overhead controllable variance.

b. Determine the fixed factory overhead volume variance.

Variable overhead 5540,000
Fixed overhead
240,000
Total
$780,000
Transcribed Image Text:Variable overhead 5540,000 Fixed overhead 240,000 Total $780,000
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