The following information relates to Turpin Manufacturing's overhead costs for the month:



Turpin allocates manufacturing overhead to production based on standard direct labor hours.



Turpin reported the following actual results for last month: actual variable overhead, $14,500; actual fixed overhead, $5,400; actual production of 4,700 units at 0.22 direct labor hours per unit. The standard direct labor time is 0.20 direct labor hours per unit.



Compute the fixed overhead cost variance.


FOH cost variance = Actual FOH - Budgeted FOH
= $5,400 - $5,600
= $200 F

Business

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